Simplybiz Group’s Consumer Credit Centre has launched a helpline to give brokers and introducers clear answers about what they will need to do to meet the requirements of the upcoming Mortgage Credit Directive.
Trained specialists will be on hand to provide guidance and advice ahead of 21 March deadline for the new European Union-wide rules coming into force.
David Golder, managing director of the Consumer Credit Centre, said there is still very little experienced support available to firms now required to meet the demands of the Mortgage Credit Directive.
Mr Golder said: “At a recent round of Simplybiz compliance workshops, I spoke to many individuals who were concerned about which permissions they needed to meet the requirements of the Mortgage Credit Directive.
“Some were worried they had left it too late, while others had applied for permissions unnecessarily, wasting both time and money for all concerned.”
He added the free service was available to anyone affected by the legislation, providing callers with answers to their queries and “putting them back in control of their regulatory journey”.
Late last month, Knight Frank Finance managing director Simon Gammon suggested that brokers are struggling to cope with lenders’ many different interpretations of the new client disclosure documents.
The directive demands the Key Facts Illustration (KFI) is replaced with the European Standardised Information Sheet (ESIS), which lenders must begin using by 21 March 2019, although until then they can continue to issue a KFI or KFI plus to provide the same level of information as an ESIS.
There is no prescribed format for the offer document under the Mortgage Credit Directive, which means banks and building societies have been free to produce their own versions within the regulatory framework.
Mr Gammon said this has resulted in brokers having to memorise all the different approaches in order to ensure they continue to give good advice.
This week, Mansfield Building Society became the latest lender to reveal its approach to the changes, opting to introduce the new KFI plus customer documentation for new business and mortgage offers during February.
It will also be operating within the new consumer buy-to-let regulatory framework for brokers with the appropriate consumer buy-to-let permission on the Financial Services Register.
The society stated it will begin issuing binding offers with a 10-day reflection period from the date of issue. Customers will be able to opt out of this by completing and returning their binding offer within this period.
peter.walker@ft.com
