The mortgage industry must work to promote the benefits of impartial debt advice, it has been claimed.
Robert Sinclair, director of the Association of Mortgage Intermediaries, made the assertion following a conference on the state of the homeowner loans market held by the Financial Services Authority.
He called for everyone in the sector to pull together in order to seek solutions to the issues created by the onset of the credit crunch.
“The regulator and the lending industry must encourage consumer access to advice and more importantly, independent advice, not restrict it,” he remarked.
Mr Sinclair said that lenders must adhere to a “duty of care” and base future decisions on what borrowers can afford to pay when taking out home loans.
Meanwhile, Phil Jones, personal finance campaigner at consumer body Which?, has argued that increased competition from supermarkets in the financial services sector may be beneficial for customers seeking products such as loans or insurance.
By Jamie Price