Brightstar campaigns for 'smarter FCA rules' on specialist advice

Brightstar says these borrowers are turned down for mainstream deals or have complicated requirements but are unaware of the specialist options available to them.

Its research shows there were 350 declines a day for the mortgage sector alone, but Brightstar says this is also happening across the specialist sector for those in broken chains or those looking to finance housing repairs, for example.

The distributor also believes FCA regulation does not go far enough in expanding mortgage advice across all finance options and hopes the campaign will shake up "any complacency at the regulator, parliament, banks, advisers and borrowers themselves".

In a statement, Brightstar said: "It is impossible for brokers to cover every single offering in every specialist area but there is without doubt, a moral obligation to make consumers aware of what is available to them.

"We feel that the impact of not receiving the right advice or guidance is overlooked by all involved in the industry and the effect on these consumers could be devastating.
   
"While the majority of brokers are doing a fantastic job, our experience is that there is still a significant minority that are closing the door unfairly and on that basis we will be petitioning for the regulation of advice via the FCA and the Treasury."

Michelle Westley, head of marketing at Brightstar Financial, commented: “This campaign means supporting Credit Crushed borrowers across the specialist loan market. This goes beyond mortgages.

“It means telling the FCA and Treasury to fix their rules to ensure all borrowers are given access to professional advice on the full range of options, not just mainstream products.

“And it means educating consumers about the role of specialist finance and the innovative solutions available to them.”