Darren Pescod, managing director of The Mortgage Broker Ltd, said a costing exercise to discover the additional expense of TCF to his business had revealed a figure of zero. The exercise covered TCF principles, such as promotional material, advice and sales processes, staff awareness and product understanding.
Pescod said: “With all the talk about TCF, there has been a lot of murmuring about the hidden cost and the new processes that we all may have to adopt. I was extremely pleased and surprised to find out that the incentives are costing us nothing and most things were in place. More brokers have probably implemented TCF without even realising it. But if they haven’t, they need to start now.”
With the deadline looming on 31 March, Pescod pointed to the Council of Mortgage Lenders’ check list on the principles as a useful tool in checking what amendments needed to be made.
However, Kevin Paterson, managing director for Park Row Mortgages, said: “It’s easier for smaller firms to build TCF into their business. For larger firms, there are ramifications across the whole business. It’s already cost us a fortune. Bigger firms always have more work to do to build in systems and controls. TCF is there to get firms to challenge all aspects of their controls, be it adverts or suitability letters; it has very little to do with advice.”
