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MCCB research says self-cert sales need monitoring

A recent mystery shopping exercise carried out by the MCCB reports that while most brokers acted professionally there is still a need to monitor the sale of self-certification mortgages.
The research, conducted in the lead-up to M-day, looking into how mortgage affordability issues are dealt with, found that in 18 per cent of the cases the arranger mentioned self-certification or fast track mortgages.
Intermediaries were more likely to mention self-cert than lenders. The potential rise of interest rates was not discussed by 56 per cent of advisers.

It also found 9 per cent of mortgage consultants gave advice on over-borrowing. However, the report says this should be seen in the context of the initial mortgage discussion where the emphasis is on the prospective customer to return for a full fact-finding interview.

The report shows 96 per cent of mortgage consultants were considered professional and 95 per cent of mortgage consultants were thought to be knowledgeable about mortgage products and the application process.

During the initial discussion, 94 per cent of mortgage consultants asked assessors for their income and 66 per cent asked if they had any available savings. Only 24 per cent of assessors were clearly advised to leave enough money to live on when considering their mortgage options.

MCCB chief executive Luke March says: “There is definitely scope for mortgage consultants to provide customers with more information during the initial mortgage discussion, particularly on financial matters which may affect their future repayments.”


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