Mortgage regulation threat

21 September 2004
Up to 75 per cent of mortgage intermediaries may boycott lenders in future if they are not ready for mortgage regulation.

New research by Marlborough Stirling found that nearly half of mortgage intermediaries (47 per cent) say they are concerned about being unable to deal with lenders who opt to close their books while they re-engineer systems and processes to become FSA compliant.

Further to this two thirds (67 per cent) of advisers say that they would be worried about the level of service that these lenders could provide once they re-open to new business after the M-day regulation changes.

This further demonstrates the long-term ramifications of not being prepared for regulation.

The director of product development at Marlborough Stirling, Phil Heaton-Jones, said: "Lenders failing to get their houses in order or simply adopting short-term solutions to regulation are in danger of permanently alienating brokers, who have indicated that they will regard this type of approach with grave concern."

He added: "Lenders must ensure that they are in a position to provide excellent levels of service following M-day, underpinned by sound business processes and modern technology, otherwise intermediaries will vote with their feet."
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