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Lenders call for leeway on execution-only sales

by: Samantha Partington
  • 28/08/2014
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Lenders want an injection of common sense into the Mortgage Market Review (MMR) rules on execution-only sales which they say are causing frustration among borrowers.

Under the new rules if a borrower choses to take out a mortgage without advice using the execution-only route, the lender is not allowed to have any interaction with the customer.

But lenders want the option to give borrowers information to make sure the mortgage they pick for themselves is the most suitable option available.

The frustration was brought to light after the Council of Mortgage Lenders (CML) opened discussions with lenders to find out what issues have arisen as a consequence of implementing the MMR rules.

A spokesman for the CML said: “In cases where the customer opts for an execution-only sale, lenders have to be sure that the borrower is choosing from a complete and up-to-date list of products.

“If the customer wants to do this on the phone or in a branch, lenders would like to be able to make sure the customer has all the appropriate product information without straying into the advised sales option.”

He said currently, if a new rate has been added to the lender’s website, the adviser can only ask the borrower to revisit the website but cannot say why, which is causing customers to become frustrated.

The CML intends to raise the issue with the Financial Conduct Authority when it begins its review of the MMR and the unintended consequences of its implementation, later this year.

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