SimplyBiz: 'Unlimited' firms must consider all options

Richard explained that: “A firm must consider all mortgages from the relative market to be ‘unlimited’.
 
“If you only offer a particular area of finance from a certain set of lenders, that is classed as limited selling.
 
“Limited firms have to state which lenders they work with to make sure they are clear, fair and not misleading.”
 
Another key point raised was responsible lending and the need to understand the client and his or her requirements.
 
Richard suggested that brokers should undertake a fact-finding profile to evaluate the client’s needs and limitations - explaining that SimplyBiz had created a template that is already widely used.
 
A statement from the borrower outlining what is important to them was also required when taking out a regulated mortgage contract.
 
“There is a requirement to ensure all advice is suitable,” added Richard.
 
“Responsible lending is a responsibility of the lender, but an adviser must ensure affordability is suitable.”
 
When assessing affordability, the client’s income must be independently verified though documents such as a payslip, while expenditure must take into account committed expenses, essential expenses and quality of living expenses.
 
There was also a reminder that individuals who offer regulated advice must have passed the Certificate in Mortgage Advice and Practice (CeMap) qualification.
 

If you have any questions on the information in this article, or any other area of regulation or compliance support, please don’t hesitate to get in touch with the SimplyBiz Consumer Credit Centre team on 01484 443424.