Jupp said those customers currently on low tracker rate mortgages and looking to take cash from their property should not be forced onto a new, higher rate, product.
The Brightstar CEO warned brokers doing this without looking at options such as second charge loans were leaving themselves exposed.
“It is highly possible that by keeping these clients on these lower rates and taking extra funds on a second charge, the ‘blended’ cost is going to be cheaper,” he wrote in a blog for Mortgage Solutions.
“If you don’t do this, it could at best, and will at worst, be argued that you haven’t considered the clients’ circumstances correctly and as a result you have failed in your ‘duty of care’ as you lost them the savings of their lower rate when there was a better and cheaper opportunity available.”
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