led the market at some pricing points. The other might be where the loan was clearly unaffordable.”


In the sub-prime boom years after M-day in October 2004 when mortgages became regulated by the Financial Services Authority, the proc fees on offer for brokers doing sub-prime deals were huge by comparison to prime proc fees. “I think borrowers would have a genuine complaint if they were put through as sub-prime when they’re a prime customer,” admits John Malone, executive


chairman of PMS. “For brokers facing this the problem is going to be record keeping and documentation. It won’t be whether they were right or wrong to advise that deal it will be proving why they advised it. “I would always defend brokers to the hilt but if the paperwork isn’t there you can’t defend the indefensible. It comes down to that broker’s responsibility.” Kevin Duffy, managing director of Mortgageforce, says some borrowers will definitely have a claim. “I think there will be less justification for


compensation in these areas than some consumers imagine but that said, if a consumer can demonstrate courtesy of his or her credit status at the time of application that they were sold an adverse mortgage product at a rate higher than that which they genuinely qualify for, then compensation could and indeed should be considered.”


Sinclair explains that there are no generalisations on this though. “Who is liable will depend on the circumstances of the case, the rates available at the time


mortgage introducer OCTOBER 2011 33


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60