Following the release of the Association of Mortgage Intermediaries’ (AMI) factsheet on the issue of credit scoring, brokers have called for a revamp of the system, with a platform allowing brokers and lenders to review a client's search for a mortgage, without any hard footprints appearing on their credit score.
Speaking at the Mortgage Brain Premier Events, one broker, who wished to remain anonymous, said: “At the moment, the current system is a lottery. You might get accepted for a mortgage, then be turned down later on in the process because hard footprints come up while the client is searching for how much they can get from different mortgage lenders.”
He added: “Lenders should focus less on credit score and more on credit searches.”
Another broker added: “Although I understand lenders’ point of view, it is essential that the footprint issue is sorted out. They need to be able to assess the client’s ability to repay the mortgage, but more leniency should be given to this practice.”
Rob Griffiths, associate director at AMI, admitted the current footprint practice was in need of urgent review. He said: “The issue of footprints needs to be clarified as brokers have to ensure clients are not disadvantaged in their search for credit.”
However Robin Gordon-Walker, spokesperson at the FSA, argued the regulator had already improved the footprint problem, an issue outside of its original regulatory control. He said: “The issue of footprints is not a regulatory issue like the issue of advice. However, we became aware very quickly that something needed to be done to avoid heavy footprints that may stop a borrower getting a mortgage offer. We look to firms to act in a way that overcomes any difficulties that repeated credit searches might pose.”
