AMI stands up for broker advice

28 July 2008

An undercover investigation by Which? that claims many mortgage advisers are failing to do their jobs properly only involved 13 independent mortgage brokers.

Which? claims 41 out of 50 advisers it visited failed to provide one or more key pieces of information. But three out of only four advisers who passed the consumer watchdog's test were independent brokers, while the fourth was an Alliance & Leicester adviser.

Which? visited 24 advisers in high street banks, 13 advisers at estate agents, and 13 independent brokers.

The survey prompted the Association of Mortgage Intermediaries to highlight the importance of advice from independent brokers, rather than advisers tied to banks or estate agents.

Chris Cummings, director-general of AMI, says: "Independent brokers provide advice that is focussed on individual needs. In contrast, banks and building societies may only offer generic information."

Which?'s researchers posed as first-time buyers when visiting banks, estate agents and brokers in England and Scotland, and asked for advice.

Which? found that 35 advisers it visited did not ensure customers could afford mortgage repayments. Two-thirds tried to cross-sell unsuitable insurance products and many failed to tailor their advice to clients' needs.