Free Independent Mortgage AdviceIndependent mortgage advice free of charge
This weekend pulled into the home loan industry with the introduction of a free personalized mortgage advisory program on the telephone. The Mortgage Advisers went online on Wednesday and is targeted at the 750,000 members of the consumers' organization and their families and acquaintances - but if it works, it could be made available to everyone.
There is a prospect of looking at "every mortgage" on the mortgage markets, even those that are only available by going directly to the creditor so that they can be sure that they are getting the one that is right for them. This train means What? is parked on the lawn of British mortgage dealers, some of whom will be angered by the implicit critique of their pledge "advice from someone you can rely on and who gives them the full picture".
The Mortgage Advisers is a new company consisting of a highly skilled staff and subject to regulation by the Financial Services Authority. "A spokesperson says, "Our advice is tailor-made for each client and takes his specific situation, financing requirements and long-term goals into consideration. "We' ve responded to our member enquiries and established an unbiased policy.
" When you have a boyfriend or relative who is a Which? member, you can use the phone services although you need their member information. Would it be a bad idea for you to send your member information by e-mail to everyone you know so that they too can use the services?
For his advice no charge is made. There are other "free brokers" out there, especially London & Country. The Which? services, however, are uncommon in that their consultants do not earn fees - they earn a wage. Certain creditors will give the ministry a provision for the recommendation of one of their mortgage loans.
This, however, finances the ministry, with the benefits flowing into the organisation's campaign work. "In no way will the committee affect the advice of our consultants, and in many cases we will not get any provision at all," says the spokesperson. This is because some are reserving their best offers for those who go directly to them - which usually means no fee payment to agents who refer these transactions to their own people.
HSBC and its First Direct Divisions, for example, have never provided their mortgage loans through agents. As Mortgage Advisers says, when a client comes into contact, a consultant takes detail, goes away and investigates the markets and sends an e-mail with referrals. She says that she will not be hesitant to suggest a "direct" business if this is the best mortgage for the client.
But in this case, clients have to fill out the mortgage form themselves. When a client finds it more convenient to pay for the advice received, this will be possible. You will be billed a charge of 0.5% of the amount of the credit, and if the company gets a provision from the creditor, it will reimburse it to the client.
As Melanie Bien of independent mortgage brokers Private Finance says: "It will be interesting to see how the Which? advisors are progressing, as it is unlikely that they will have any prior experiences. And with the pledge not to give a fee, they won't let the best guys in the industry work anyway.
Clients would be better off to choose an independent mortgage intermediary with years of expertise and a strong history of success. It is free of trade prejudices and is not affected by billions of dollars in ownership, politics or stock.