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Lenders to be named and shamed by BM

BM Solutions is embarking on a campaign to name and shame lenders which it feels are not giving a fair deal to consumers.

It is launching the controversial campaign in response to what it sees as the low levels of understanding in the mortgage market and what mortgage conduct of business rules require.

The firm says its press campaign will target lenders it believes are not operating in the spirit of regulation or are charging high procuration fees. It singles out Mortgages plc and igroup as two of many lenders which have high broker fees but what it says are particularly good rates for consumers.

BM Solutions offers a 0.75 per cent fee while Mortgages plc has a 1.25 per cent fee.

The specialist lender arm of Halifax says it is attacking high procuration fees in the spirit of MCOB rule 4.1.13, which requires a company to recommend a mortgage product that is the least expensive for that customer.

BM Solutions says it will also be looking at packager fees which it claims are often not fully disclosed to the customer.

Head of sales Alan Cleary says: “We are making a concerted effort to start challenging the market again. It is not a level playing field.”

But rivals say the move is an attempt to increase the company’s profile in an increasingly competitive market. Mortgages plc sales and marketing director Peter Beaumont says: “This is a highly simplistic approach to a very complex market. Is it coincidence that we have just launched our product range? BM must be aware that there is a lot more competition on the horizon.”

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