Identity checks

WendellG

I've just been through the mortgage process and I thought the whole identity check thing was really painful. Firms just seem to be able to get you to jump through hoops just by mentioning FCA compliance.

For a single mortgage we had to do 3 identity checks with proof of identity and address. The first and easiest was the mortgage broker who accepted a scanned passport and driving license; next the lender who wanted an authenticated copy of the above (which we paid our GP to) and finally the lenders legal firm who had a very limited list of address verification options and we finally ended using the Council tax bill.

They would only accept verification from a solicitor, an employee of the lender (Santander) , or the Post Office verification service - and not the GP.

How can three organisations interpret what are presumably the same rules from the FCA in such very different ways?

Senior_Paper_Monitor

I would expect the broker to take the original scans and then provide certified copies to the lender and solicitor in the great majority of cases - usually compulsory for the lender (although Natwest/RBS occasionally insist on branch visit if you didn't see broker face to face) and accepted by the very great majority of solicitors (we automatically send a message to the solicitor offering this by various delivery methods as soon as we know who they are).

ACG

As above, im surprised the broker did not takeoriginal copies - they could have then certified and forwarded those over to the lender and solicitor.

dunstonh

Firms just seem to be able to get you to jump through hoops just by mentioning FCA compliance.

The multi million pound fines that the FCA keep dishing out are pretty good reason. Along with the reputational damage that failure brings in the media. Such as HSBC has suffered.

For a single mortgage we had to do 3 identity checks with proof of identity and address. The first and easiest was the mortgage broker who accepted a scanned passport and driving license; next the lender who wanted an authenticated copy of the above (which we paid our GP to) and finally the lenders legal firm who had a very limited list of address verification options and we finally ended using the Council tax bill.

All three need are equally liable for money laundering checks. Hence why you are asked multiple times. There are no set rules on what is acceptable. Just guidelines. However, typically, you would expect them to be similar. In most cases, the lender and solicitor will take the broker certified copies. Although some solicitors can be fussy.

How can three organisations interpret what are presumably the same rules from the FCA in such very different ways?

The FCA does not regulate solicitors.
They are not rules.

WendellG

The solicitor had a helpful FAQ and why they had to do their own check and not rely on the Santander check and guess what the FCA was to blame.

ACG

But your broker could have done the job for all 3.

At the end of the day if sending off the same ID to 3 companies got you your house, is it really the end of the world?

WendellG

My point was it was effectively 3 different IDs (x2) when you count the differences in requirements to get them verified, for the same thing, and each verification adds 3 days minimum to the processes

I'm probably paranoid about identity theft as any financial dealings seems to leave you wide open to it being abused.

ACG

I do this on EVERY case - where clients use my solicitor.
Otherwise I do ID for myself and the lender.

Im sure other brokers are similar.
It sounds like you have a broker who does not do that - so its resulted in you doing a little more work.

dunstonh

WendellG wrote: »

The solicitor had a helpful FAQ and why they had to do their own check and not rely on the Santander check and guess what the FCA was to blame.

Not very helpful if they are not telling the truth.

I do this on EVERY case - where clients use my solicitor.
Otherwise I do ID for myself and the lender.

Im sure other brokers are similar.
It sounds like you have a broker who does not do that - so its resulted in you doing a little more work.

My mortgage advisers do the same. provide the ID to the solicitor if our one is used but not if our solicitor is not used.