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‘Dual pricing could send mortgage fraud through the roof’ – Star Letter 08/11/2019

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  • 08/11/2019
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‘Dual pricing could send mortgage fraud through the roof’ – Star Letter 08/11/2019
Each week Mortgage Solutions and its sister title Specialist Lending Solutions selects the best contribution from readers as Star Letter.

 

The first of our top comments came from George Williamson, who responded to the article: TMPE2019: FCA encouraging lenders to dual price ‘really scares me’ – Duncombe  

He said: “Given that circa 20 per cent of all general insurance claims are not paid in full because people are mis-buying through execution-only, the potential outcomes for mortgage consumers could be really terrible and mortgage fraud will go through the roof.” 

 

Lenders cautious of alternative construction methods

The article: Government creates MMC champion in bid to accelerate uptake, also got a reaction as A K Narey said: “The possible fly in the ointment will be whether mainstream lenders are happy to advance funds against properties built in this way. 

Lenders as a whole tend to be wary of anything other than standard construction methods and if finance is difficult to obtain this initiative is unlikely to succeed in any meaningful way. 

 

Make cashback cover legal costs to tackle complaints 

The article: TMPE2019: NatWest tackling free legals service issues also prompted some feedback from readers. 

Firstly, Arron190 said: “As I bleat on repeatedly, NatWest should follow other lenders and offer cashback alternatives. Lenders should remember that they are responsible for complaints about their free legals and not the solicitor.”

Paul Adamson added: “This is not just a NatWest issue, I have seen exactly the same issues with many lenders offering free legals as part of their mortgage products.  

“The solution; offer cashbacks instead to cover a proportion of the legal costs. I have been recommending solicitor firms to clients for years, yet time and time again I see the firm I recommend later failing customer service standards.  

“Why? Because every time the solicitors have later signed up to lenders offering free legals and are unable to cope with the extra demand imposed upon them.”  

“Undoubtedly the lenders pay them less than typical clients, so the number of staff taken on are fewer to ensure profit is maintained. In short, free legals ensure we all suffer in one way, shape or form,” he added. 

 

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