UKMC issued the warning that time is running out for brokers and their clients, who it claims may find themselves without a mortgage broker through the house-buying process.
Pam Burnett of UKMC described the situation as ‘a ticking time bomb’ for the mortgage industry and the house-buying public adding that it is imperative for house sellers to make sure that their buyer’s mortgage brokers will be compliant by 31 October.
She said: “Sadly mortgage brokers are sticking their heads in the sand on this one.”
A UKMC spokesperson confirmed that the figures were obtained directly from the FSA website.
However Robin Gordon-Walker, spokesman for the FSA, said: “The facts are that in our recent report out on 3 September 2004 we had almost 7,000 applications, 3,950 applications for DA status, and 2,906 ‘Variation of Permission (VOP’s) for mortgage and general insurance business. We do not recognise where the two-thirds figures have come from and suggest UKMC reviews its calculations.”
Mark Mountney, managing director of Premier Mortgage Management, said: “UKMC are shooting well wide of the mark. The FSA numbers suggest that roughly 65 per cent of original registered MCCB firms have either applied for new authorisation or are varying their permission.”
Andy Pratt, chief operating officer at Alexander Hall, said: “I’m far from convinced; these figures are very high.”
