A mortgage is a long-term commitment and the financial strength and professionalism of a lender should be taken into consideration by both intermediaries and their clients when taking out a mortgage, according to Brad Fordham, head of sales at Abbey for Intermediaries.
But while financial strength of a lender is no doubt important, from a broker’s perspective Stephen Smith, director of housing at Legal & General, said this aspect was already taken care of with lenders being authorised and regulated by the Financial Services Authority.
Clearly, Mr Smith said if there was any current topical news about a lender or its prospects, a broker may wish to take that into account in discussing the choice of lender with the customer.
