Mortgage Broker Tools (MBT) has launched a new vulnerable customer disclosure information service, providing brokers with an up-to-date, searchable database that outlines how to declare a customer as vulnerable to each lender.
The service is designed to help intermediaries to meet their regulatory obligations with confidence, while delivering the most appropriate advice to clients with additional needs.
In November, Smart Money People undertook a collaborative industry survey, with lenders, mortgage clubs, and networks, called "Understanding and disclosing vulnerability: A broker’s perspective”. The survey, which was led by Newcastle for Intermediaries, found that more than 89% of brokers had encountered a vulnerable client in the previous year, but more than 58% highlighted a lack of clarity around disclosure processes as a major barrier to providing appropriate support.
The new vulnerable customer disclosure information database is now live on the MBT platform and will be updated regularly to reflect changes in lender policy.
Tanya Toumadj, CEO at Mortgage Broker Tools, said: “The FCA is very clear on the role that brokers play in identifying and supporting vulnerable customers, whether they are experiencing illness, disability, financial hardship or significant life events. However, a recent survey found that lack of clarity when it comes to knowing how to disclose vulnerabilities to lenders is a major hurdle for brokers.
“This important piece of industry-wide research, spearheaded by Newcastle for Intermediaries, clearly demonstrated the need for clearer, more accessible information when it comes to disclosing vulnerable customers.
“Our new vulnerable customer disclosure database helps to address this, with clear information on how to declare vulnerabilities to lenders. By making this service easy to access, we’re helping brokers meet their obligations and offer tailored advice, without having to second-guess each lender’s process.”
Michelle Ash, national account manager at Newcastle Building Society, added: “For the past 12 months lenders have been working together to understand our role in supporting brokers disclosing a customer vulnerability. For this part of the project Newcastle for Intermediaries and The Mortgage Lender have worked with lenders to compile their route of disclosure for vulnerability. We are really pleased to be able to provide that detail to Mortgage Broker Tools and support their database development. The new service helps both brokers and lenders, playing an important role in encouraging disclosure and ultimately supporting customers.”
