Top Ten Tips to fast track completion: Tip 2

Top Ten Tips to fast track completion: Tip 2




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Treating customers and brokers fairly

There has been and will be much debate about how regulation will affect the Short Term Lending market and a regular response I have seen from some lenders and brokers is that the Bridging market is not regulated. That is not the case, all lending markets are regulated in some way, whether that be via the FSA, the OFT or by Common Law.

My view is quite simple in that the vast majority of regulation is just simply good practice with an over-arching principle to protect consumers from unscrupulous money lenders; therefore from my point of view as to whether short term lending is or isn’t regulated is that it is a moot point. Since joining this market I have observed a number of practices that are not customer friendly and to be frank some of the practices are totally unjustifiable. For example where a customer defaults on a loan the lender should only charge fees and interest that are in line with the additional cost to them, there is no justification to charge these customers punitive charges and interest. You only have to look at the multi-million pound fines levied to a number of lenders for this exact reason.

Also, putting regulation to one side you and I know that it is not right to nail a customer who has just defaulted on their loan with a 5% arrangement fee and a 3% loading on their interest rate just so they can get a one or two month extension; this is an actual case that I have seen in the last two weeks. So when you are next choosing a lender for your short term or bridging loans think about giving Precise Mortgage a try, we will always treat customers and brokers fairly not just because we are an FSA regulated lender but because we want to.

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