15 March 2010
Industry needs clearer definition of advice says Platform
Platform today (15 March) urged the industry to introduce a
clear definition of intermediary advice and help boost consumer
understanding of the benefits provided by the intermediary
sector.
The intermediary lender of The Co-operative Bank believes that a
common standard of advice that clearly tells consumers what to
expect from mortgage intermediaries would help make the
intermediary sector more and accessible and valued.
Lee Gladwell, Business Development Director, at Platform said:
“There is currently a fantastic opportunity to show the true value
of intermediary advice to consumers, who now more than ever, are in
need of quality advice to help them with their mortgage
decisions.
“It has been apparent in our discussions with brokers that the
industry could do more to make consumers fully understand the
benefits of the advice it provides.
“We believe a set of consumer-friendly principles that clearly
defines the scope and standards of advice to consumers would
promote the industry and provide direction for it to work
together.
“We would like to see the sector come together to clearly agree
on the scope of advice that consumers should be able to expect from
mortgage intermediaries. It could include a commitment to advise on
a range of cost comparisons including rate and total cost, product
options and build in a degree of stress testing. It has to
move brokers away from the perception that they simply help find
the cheapest product.
"We're not advocating more regulation - we're suggesting that
this should be an industry initiative. We also do not think that
clear standards should necessarily require professional
intermediaries to do anything different from what they currently
do. We are simply suggesting that having a clear definition of
intermediary advice would make it much easier to promote the
benefits of what the best intermediaries already offer."
Dev Malle, Group Sales Director at Personal Touch Financial
Services added, “This is an incredibly important time for
intermediaries and a positive message for consumers on the benefits
and choice that intermediaries give could not be better timed.
“On behalf of the intermediary community I want to thank
Platform for taking the initiative to help intermediaries clarify
the unique service and advice they provide consumers. It is this
type of move that highlights the importance of lenders such as
Platform to the intermediary community.”
Since launching as an intermediary specialist lender last year,
Platform has taken an active role in supporting development of the
intermediary sector. It recently became a member of the
Association of Mortgage Intermediaries (AMI), while Lee Gladwell
has been appointed to the Intermediary Mortgage Lenders
Association’s (IMLA) board of directors.
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