The Mortgage Advice Bureau’s director of new build properties has issued a warning to brokers who put the needs of developers before their clients, stating that they need to balance the needs of both.
The director, Andy Frankish, has suggested that in all other sectors, the customer’s needs come first and just because the builders of new homes may be demanding, that shouldn’t mean that a client’s requirements should be neglected.
The comments were made during a roundtable at Mortgage Introducer recently, after brokers had said that their relationship with a developer was important for their business. One mortgage advisor commented that the relationship which exists between a developer and a new build specialist broker is the most important he had experienced in 30 years of being in the financial sector. The advisor added that the broker and developer are both earning from looking after the sites.
If the client is unable to obtain a mortgage, the developer can’t sell the property, while a mortgage can’t be secured unless there is a suitable property available. Frankish suggested that although he agreed with the comments, the new regulations meant that brokers must consider the needs of the client, stating:
“…you’ve got to be very careful because the regulator is looking at us closely where we are taking the customer on a journey.”
Mortgage advisers are provided with suitable training, including CeMAP courses, to provide further knowledge and awareness of a client’s requirements to developers.