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Rock seeks clarification on Which? research

Which? has already admitted that one of its key criticisms – that advisers working for major high street names failed to make it clear that they could only recommend their own company&#39s mortgages – applies to independent advisers, not tied advisers.

Ron Stout, public relations manager at Northern Rock, says: “The only specific area we could identify was incorrect and Which? has accepted that. But as the research stands, it&#39s too general and we await more specifics.”

In the mystery shop, seven researchers posing as first-time buyers visited 39 banks, building societies and estate agents between September 2003 and January 2004. They visited Abbey, Barclays, Bradford & Bingley, Connells, Halifax, HSBC, Lloyds TSB, Mann Countrywide, NatWest, Nationwide, Northern Rock, Sequence, Spicerhaart, Team and Your Move, plus seven independents.

They found that seven advisers did not mention the Mortgage Code, while 14 gave misleading information about it. In addition, 21 advisers failed to properly explain the ways to repay a mortgage and 23 didn&#39t clarify the different deals available.

Advisers were also found to concentrate more on selling protection insurance, on which they earn commission, than giving mortgage advice.

Malcolm Coles, editor of Which?, says: “Bad mortgage advice can cost consumers thousands of pounds or, worse, their homes. Consumers deserve better. We&#39ll be keeping an eye on the situation.”

Charlie Geller, who handles PR at Brettles Financial, warns that financial advisers should take heed of the research or run the risk of gaining themselves reputations akin to those that have come to be associated with estate agents or cowboy plumbers.

He says: “The majority of financial advisers conduct their business activities in a reputable and ethical fashion but it&#39s important the industry recognises that incidents of inappropriate behaviour don&#39t only affect the individual adviser, but the industry as a whole.”


Skipton appoints intermediary sales manager

Lucy moves from Newcastle, where she worked for the past seven years as a branch manager and, more recently, a regional account manager. Her main responsibility will be to develop business in her area, promoting the products of Skipton, and that of its subsidiary company, Amber Homeloans.

Conti launches Bulgarian scheme

The emerging Eastern European countries including Bulgaria have gained a reputation for having legal systems that make it difficult for purchasers to establish legal title over properties. Conti has launched its scheme to ensure that lenders working with them in Bulgaria can be confident of obtaining a charge against properties in the country to give […]

Professional Mortgage Partnerships receives MTA letter

The network has also announced the appointment of Martyn Bell as head of its network. Bell joins Professional Mortgage Partnerships with a background of over 25 years in financial services. His role will be to ensure that the network offers excellent products and service tocover the needs of all its appointed representatives plus continuing to […]

Networks turn to third parties for compliance help

Innovate Business Services has received a number of requests from networks, lenders and insurers looking to regulate behind the scenes what their advisers do . The company will vet new advisers and monitor and audit regulatory standards either as a consultant or as an outsourced or white labelled offering. It also provides technical services for […]


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