We have got no control over the products the lenders design, we can only inform the client of the mortgage lender’s designs.
An example is that the lender can change the exit fee over the term of a mortgage. This is unfair and I highlight it to the customer, but what more can I do?
Another example is the increasing fee the lender charges if the customer go elsewhere for the buildings insurance. I have seen the fee increase for a customer between key facts illustration (KFI) and offer. The Office of Fair Trading (OFT) only agreed to the charge because of the administration work the lender needs to do when checking the policy, although most solicitors check this at the customer’s expense. But how does the OFT feel about this increase? I have also seen that if the client remortgages away from the lender and they have had the insurance with that lender, they have been told the insurance contract they have is no longer available to them. It would be good if these concerns were highlighted to IMLA and if it could explain how we mortgage brokers can change this to ‘Treat the Customer Fairly’.
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