MortgagesDec 19 2022

Mortgage industry must be vigilant this Christmas

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Mortgage industry must be vigilant this Christmas
Photo: Andrea Piaquadio via Pexels

Mortgage advisers and lenders must be extra vigilant over the holiday season as criminals may push their luck "infiltrating the market", a fintech provider has warned.

Tim Barnett, chief executive of Credas Technologies, which provides identity verification checks, has urged those working within the UK property sector to "remain vigilant" over the festive period.

He said a reduced workload, shorter operating hours and lower staff levels could provide criminals with a "better chance of bypassing anti-money laundering checks and infiltrating the market". 

According to Barnett: "Many of us working within the property sector will be under pressure to get those final sales over the line before the year is out. 

If brokers are not operating at 50 per cent capacity, then they’re probably lying.Martin Stewart, London Money

"At the same time, reduced staff levels in the run up to Christmas can add to this pressure as we find ourselves picking up the slack for those with a surplus of annual leave to take."

But he said all these factors could lead to some unintended oversights, particularly where AML compliance checks are concerned. 

Barnett added: "It remains paramount that we maintain a high level of vigilance and compliance with regard to our AML responsibilities, to prevent any criminal entities from taking advantage of the seasonal market slowdown.”

His comments came following a survey commissioned by Credas Technologies, which revealed 70 per cent of those working in the property market expected to operate reduced working hours. 

The study also found:

  • 57 per cent believe that their workload will reduce as the festive season approaches. 
  • 70 per cent stated they would be operating reduced working hours during the festive period. 
  • 59 per cent said the Christmas period would mean operating with a reduced staff level.
  • Only 12 per cent said that reduced working hours and staff levels would impact their ability to execute operationally. 

But Martin Stewart, co-founder of London Money, said he did not expect a drop off in compliance, regardless of the reduced working hours. 

He said: "Underwriters, risk and credit [professionals] sitting around with nothing to do are the borrowers' worse nightmare.

"I think compliance will actually be tighter."

However, Stewart added that given the current market, the likelihood of business being done at all over the holiday season was low. 

He added: "They can go down to a staff of one, and that won’t affect service as there is very little business being done.

"If brokers are not operating at 50 per cent capacity, then they’re probably lying.

"The purchase market is sparse, the BTL market is dead, the product transfer market was condensed into September and the remortgage market are all waiting until the new year."

simoney.kyriakou@ft.com