AMI publishes client information post-completion guidance

AMI members have long been reporting problems in obtaining information on clients' mortgages from lenders following the completion of that mortgage. Lenders have often cited the Data Protection Act (DPA) as restricting them from supplying client’s personal data.

In research conducted by AMI, 87 per cent of intermediaries said they had experienced difficulties obtaining information post-completion.

Specific examples of member difficulties from the research include trying to get:

  • Payment information, for example, the amount of the first payment or the date the first payment is due
  • Redemption figures or mortgage balance
  • Confirmation of the repayment method
  • Information to respond to complaints
  • Information on follow-on special schemes/interest rates after the end of special rate period
  • Additional loan requests/further advance information
  • Mid-term queries and problems faced by clients
97 per cent of intermediaries said they would support a form of wording that could be signed by the client to give the lender authority to supply the intermediary with information about the mortgage post-completion.

AMI has sought legal advice on this matter, which concluded that providing the intermediary has appropriate authority from their client, they are entitled to ask for information on their client’s mortgage post-completion. AMI has also consulted the Information Commissioner, the UK’s independent public body, which regulates and enforces the Data Protection Act.

Guidance from the Information Commissioner highlighted the following issues. It felt:

  • Intermediaries should only seek access to information about their clients when, and to the extent, it is necessary.
  • Authorisation should be restricted so as to only allow intermediaries access to the information they reasonably require to fulfill their obligations in relation to that particular client, unless the client is happy to allow unrestricted access.
  • The client must be given a free choice as to the level of access he or she grants to their broker.
  • The length of the agreement should be defined. The agreement should clearly state how long it will last. This should be agreed between the broker and the client.
The ultimate decision to disclose rests with the lender if it has received no client authorisation. AMI is therefore advising its members to produce a letter including the wording that their clients can then sign. This can be sent to the lender to confirm the client is happy for the broker to be provided with information on their behalf, and to confirm what level of access they are happy to grant (i.e. restricted or unrestricted).

Rob Griffiths, associate director of AMI, commented: “It’s clear from our research that intermediaries are often frustrated in their quest to access information about their client’s mortgages post-completion. The wording AMI has now made available to members not only provides them with the necessary client permission to continue dealing with their mortgage affairs post-completion, but also satisfies the DPA.

“It would be hard to imagine any lender refusing to divulge information that an intermediary needs when his or her client has specifically requested it and the instruction meets DPA requirements. AMI urges its members to re-draft any authorisation given by clients to expressly include consent to the lender to provide information after the mortgage has completed.”