Following publication of the FCA’s Mortgage Market Study, the UK financial services regulator (Financial Conduct Authority) found that 30% of all consumers could have found an identical or better deal elsewhere, regardless of whether they received advice or not! On the back of this the FCA proposes that when advisers do not recommend the cheapest mortgage available, they must explain this to the client and keep detailed records! How does this happen I hear you ask?
First of all, not all advisers are independent like us. Most estate agents and big companies are what the industry calls “restricted advisers”, meaning they either sell only their own mortgages (like the banks for example) or just loans from a “few” selected companies. If they only have access to say 2 lenders then it should be pretty obvious they may not be the cheapest (when compared to the whole of the market).
Also, some lenders may have different criteria when selecting the clients they want – in other words they are looking to only borrow to clients with squeaky clean credit files so if your adviser understands you have a CCJ, may use their “skill and judgement” to go with an alternative lender but either way this should always be explained fully allowing you to make an informed decision!
As always, our advice is absolutely clear – only use an INDEPENDENT mortgage adviser who will scour the WHOLE market for the best deal. Here at Financial Fortress, we cutting edge technology that is updated regularly to complete analysis that would take you months! When your ready, get in touch with your local experts and ensure your very own Financial Fortress!