In an open letter to sourcing system providers, Bolton said he would be prepared to check product data on the systems to a level to enable them to produce guaranteed Key Facts Illustrations (KFIs), but added: “Like everything it comes at a cost. Please indicate if you would like BM to cost out this service to you.”
Brokers are angered over BM’s stance and believe the lender is placing itself in a bad position with intermediaries.
Tony Moss, partner at Best Advice Financial Planning, said BM is offering itself up as an ‘unnecessary martyr’. He said: “BM should remember that if it wants the sourcing systems to pay for the costs of checking product data, these costs will inevitably be passed down to the brokers who are paying to use these systems.”
Although some lenders say they empathise with BM’s position, they agree that a lenders’ priority is to make sure brokers are receiving accurate information on KFIs from sourcing systems.
Julian Wells, head of marketing at Mortgages plc, said: “We’ve hired more staff in our Glasgow office to ensure products on sourcing systems are accurate. Come regulation, brokers will have the facility to search the systems for products that have been verified. If they haven’t, there is less chance a broker will use you.”
s Bill Safran, joint managing director at Trigold, said: “No other lender has approached us stating that we should pay these costs. In fact many lenders have been very responsive in verifying their product details on our system.”
