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Advisers on the front line are expected to embrace TCF in all aspects of our dealings with customers yet some lenders, including the government-supported Northern Rock, are seemingly often allowed to offer inferior, or limited, terms to their current customers than those offered to new customers. What do others think? Geoff Buckingham, Buckingham Mortgage Services Ltd, London

Peter Williams, Intermediary Mortgage Lenders Association, London

Dear Geoff,

Given the very challenging conditions currently facing lenders and borrowers alike it is, of course, important lenders maintain the highest standards of customer service and work to assist any homeowners who face difficulties.

The FSA is working towards a more principles-based approach to regulation as opposed to hard and fast rules. This approach is designed to offer firms greater flexibility in their operations, with TCF forming a significant part of this approach.

It requires that customer interests are at the forefront of firms' guiding philosophy and values. Lenders are under exactly the same TCF requirements as advisers – particularly with reference to advising customers.

That lenders offer current and new customers different terms on their products reflects their need to react to pricing pressures and to target new markets. That does not preclude the requirement that lenders' underlying processes should abide by treating customers fairly standards.

Alex Hammond, Kensington, Berkshire

Dear Geoff,

Treating customers fairly sits across every element of the mortgage process right through from product inception, design and development through to advice, sale and ongoing client management.

This means both lenders and intermediaries have a responsibility to ensure they put the customer at the heart of their business in everything they do that may impact on the customer and the product or service they receive.

For lenders this will include market research to determine customer demand, developing a product to meet demand in terms of criteria and pricing and ensuring all supporting literature and marketing material communicates the product details in a way that is clear, fair and not misleading.

In many ways, the responsibilities of an intermediary are very similar to those of a lender but at a more granular level. So, advisers need to carry out research to determine their client's needs, find the right product in terms of price and criteria and communicate a client's options in a clear way.

If a borrower is remortgaging at the end of a deal, the most suitable new product for them may not necessarily be with their existing lender and so an adviser should go through this process again by carrying out a fact find and product selection and communicating the most suitable options.

By ensuring products are properly researched, developed and advised on both lender and intermediaries ensure the customer is always treated fairly.

John Stewart, PMI IFA, Essex

Dear Geoff,

It is true most lenders offer dual pricing to existing customers compared with new customers in order to attract them.

That is the way it has always been and will no doubt continue in the future until a major lender makes a stand and offers parity to its loyal customers. It may be hypocritical but that is the market and irrespective of treating customers fairly, lenders will continue with this practice.

As we all know mortgage business is in the doldrums and enquires are rare. As a consequence one would have assumed service levels should be excellent but they are still awful with some lenders.

They really do not give a hoot for us. When it comes to lenders treating customers fairly, I do not think they do so.

Bob Hope, BDS Mortgage Group, Hampshire

Dear Geoff,

Treating customers fairly does sometimes feel like an uphill struggle where players are not always following the same rules.

We are all expected to make treating customers fairly not just part of business as usual but advisers must demonstrate where appropriate measures are implemented, deliver fair outcomes and have no serious failings.

While in practice this seems very achievable, we have all heard stories of unfair lender behaviour and indeed can call into question whether customers are treated fairly by all parties.

Why should one client be offered enhanced rates over another by the same lender? Why should a lender offer a product directly to a client but decline the same deal when it comes in via an intermediary? Is this really treating customers fairly? Is this really fair for any of us?

If a client is offered a rate that is not widely available by their local branch are they exploring all options to ensure it is a long-term solution or simply going for the easy option?

From speaking to advisers, life at the coal face is tough and it is the added value elements where an adviser earns a crust but can fully assess a clients needs and advise accordingly over a full financial spectrum.