Last month Stephen Smith, director of housing and external affairs at Legal & General, wrote in a blog for Mortgage Solutions that lenders needed to clarify criteria and reach an industry standard ahead of the Mortgage Market Review implementation.
This has been a hot topic at both days of the Mortgage and Protection Event in Manchester and Birmingham and now Graves has added his voice to those asking for more clarity.
“I sit in lender meetings every week and tear my hair out. All we want is consistency from one lender to the next so we can give clear guidance to the advisers about what good looks like.
“I stand in front of you now and say I have no idea what good looks like because they are all different.”
The FCA will hand responsibility for affordability solely to mortgage lenders when the new rules come into force in April but Graves said brokers would still need to collect all this information in order to offer proper advice.
“We will always do that because without that information we can’t decide where to place that case,” he told the crowd at Aston Villa FC.
“We don’t just look at headline rate.”
Graves later encouraged brokers to include protection as a key component of the sales process to prevent future claims by clients.
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