The survey examined how affordability was dealt with in the initial mortgage discussion. It involved 100 assessments throughout the UK and was the last by the MCCB ahead of the Financial Services Authority (FSA) taking over regulation of the mortgage market on 31 October 2004.
The mystery shopper research showed 96 per cent of mortgage consultants were considered ‘professional’. Overall 95 per cent of mortgage consultants were thought to be knowledgeable about mortgage products and the application process.
Ben Stafford, policy officer at the Association of Mortgage Intermediaries (AMI) said the MCCB had contributed greatly to the professionalism of the industry, which was reflected in a healthy market place. He commented: “These results provide a positive testament to the industry.”
Sue Anderson, head of external affairs for the Council of Mortgage Lenders said: “The results are extremely encouraging. It is important that we have the ability to check and, if necessary, identify areas in which service could be improved. It goes to show that the code is doing what it was set up to do.”
Additional research examined how affordability was being dealt with in cases where self-certification lending was an option. Worryingly it found nine per cent of mortgage consultants said something the mystery shopper felt uncomfortable with, primarily regarding ways to ‘over borrow’.
The MCCB has recommended the FSA to keep a watching brief in the area of non-advised and self-certification mortgage sales. This is to ensure poor selling practices and encouragement of customers to overstate income do not occur.
