Consumer champion Paul Lewis, presenter of Radio 4’s Money Box programme, has further clarified his position on mortgage brokers who receive commission and charge fees.
At the Building Societies Association’s annual conference on May 23 and 24, Lewis stated that sales advice given by brokers paid by commission should be viewed sceptically by clients.
Lewis told delegates: “Brokers are just an added cost and when they are paid commission you can’t trust them.”
However, Lewis defends his views.
He says: “The fact that commission affects sales does not mean that individual advisers will always be influenced more by commission than the interests of their clients. But its presence creates a conflict of interest.
“The best will ignore the commission, others will not.”
Lewis also warns against using brokers who are tied rather than whole of market.
He says: ‘Their advice will always be partial and they should be avoided.”
l See Comment, page 64