Consumers not getting effective advice from some mortgage advisors
August 25, 2008
With mortgage borrowing costs currently high and availability of mortgages very low, it has become increasingly important for consumers to obtain effective and high quality advice when it comes to getting a mortgage, and in order to do this many are turning to mortgage advisors. However, according to a recent report many consumers are being failed by mortgage advisors who are giving out the wrong advice to those seeking information.
The report came after research was carried out by the consumer campaign group Which?. Officials from Which? Posed as customers and visited around fifty mortgage advisors at banks, estate agents, and other firms. Shockingly only four out of the fifty financial advisors that the researchers visited gave mortgage related advice that was thought to be of an acceptable standard. Around forty one of the advisors left out at least one important piece of information when providing advice according to the researchers from Which?
One official from the consumer campaign group said: “Too many of the advisers that we visited took a ‘one size fits all’ approach or seemed as concerned with selling an insurance policy on the side.”
He added: “There are still more than 3,000 mortgage deals out there, and the difference in cost can be thousands of pounds a year, so it’s vital people do their homework and choose their adviser with care.”
However, an official from the Association of Mortgage Intermediaries said: “Independent mortgage advisers provide advice that is wholly focussed on the individual consumer’s needs. In contrast, banks and building societies may offer only generic information. The study found that although there was a general failure among mortgage advisers to give acceptable mortgage advice those that performed best were independent mortgage advisers.”
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