The FSA's initiative on Treating Customers Fairly will have a greater effect on the mortgage industry than the onset of mortgage regulation and will reduce procuration fees for mortgage advisers, says Premier Mortgage Services managing director John Malone.
Speaking at Money Marketing Live in Manchester on Tuesday in a debate about mortgage regulation, Malone said lenders are already looking at how they will have to fund products under TCF.
He predicted that TCF – coupled with the effects of the Miles' report – would mean less remortgage business as lenders would be forced to offer all their products to existing customers as well as new borrowers. He said this would mean a reduction in procuration fees with lenders cutting fees as remortgaging becomes less popular.
Malone said: “The remortgage sector will be the first in which lenders reduce the amount of money they pay out and we are conscious that procuration fees will be affected. It will have more impact on the industry than mortgage regulation.”
Money Marketing Live reports, p3
Whether he is railing against misselling or cheering on Man Utd in the pubs around Highbury, CA policy chief Mick McAteer believes in standing up for what you believe in