Brokers accused of misleading clients over best deals

Brokers accused of misleading clients over best deals


An investigation by The Times newspaper has found that brokers are failing to recommend the best mortgage deals for their customers, as the most competitively priced are only available directly from lenders.

Reporters spoke to six leading national brokers, who all claimed to cover the whole of the market, asking for advice on the best value mortgage deals for a first time buyer with a 40% deposit.

Times Money found that in every instance, the IFAs failed to recommend the best deal, or any deals that weren’t available through intermediaries.

During the last year, brokers have struggled as the number of products available to them has diminished significantly. Over 60% of UK mortgage deals are now only available through banks and building societies, research by has found.

The CML states that around two-thirds of mortgages were arranged through brokers last year, however now 15 out of the 20 most competitive products this week are direct-only.

More than 25 building societies, as well as HSBC and The Co-Operative Bank offer no mortgage deals through brokers at all. Britain’s biggest bank HSBC denied being “anti-brokers” but stated that “when you outsource the sales process you are losing some control.”

Robert Sinclair from the Association of Mortgage Intermediaries commented: “Brokers who tell clients about direct-only deals are making a moral decision to inform clients, but there is no legal requirement for them to do that. In some cases brokers have done this off their own back and lost business.”

A pertinent comment left on The Times website appeared to sum up the frustration of brokers, simply saying: “Does the local butcher refer you to Sainsbury’s? Does a small electrical shop refer you to Amazon?”


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