Historically when major changes have been introduced to the UK financial services market there have been early teething problems as providers, advisers and consumers adjust to new rules, working practices and, critically, increased documentation.
However over the longer term most evidence is that the benefits make the adjustment to a new regime worth it.
The Legal & General Partnership has been established to act as Principal for around 3,000 advisers across the UK and is likely to be one of the UK’s largest mortgage advice groups. The Partnership has been working feverishly with its advisers to ensure that they are fully able to help their customers through the new process when it comes into effect after October 31 this year.
Stephen Smith, Director Housing Marketing said, “While homeowners will notice new, more detailed and potentially baffling paperwork that will go with buying a mortgage after October, they need to be aware of the more subtle changes going on beneath the surface which could have a critical impact on the level of advice they receive and the loan they end up with. Only brokers offering a choice of mortgages representing the whole of the market will be able to call themselves Independent Mortgage Advisers in future. Any other description means the loans recommended come from a narrower set of lenders and therefore the choice of products available will be reduced. Consumers need to understand the scope of the service they will receive.”
Stephen Smith continued “The current Mortgage Code which has been in use since 1997 shows that advisers can operate within appropriate guidelines and that consumers can be well protected by a properly policed market. As the market goes through the transition to formal regulation, homeowners should take greater comfort knowing that the new rules build upon the achievements of the Mortgage Code.”
