Robert Sinclair, director of the Association of Mortgage Intermediaries, has hit out at Which?’s new mortgage service.
Speaking at the Mortgage Business Expo this morning, Sinclair says he is cautious about the new service and it will be interesting to see what happens if a complaint about Which? is made to the Financial Ombudsman Service.
He told delegates this morning that he was nervous for Which? because it is trying to be both a consumer champion and a commercial business.
The advice Which? offers will be free for its members.
Advisers will be paid a salary but will not get any product commission, which will go straight to Which?.
But Sinclair says: “It is being very brave because it is trying to promote something good for consumers, but it also a commercial move.”
Sinclair says if a complaint goes to FOS it will put Which? in the shoes of the broker and it might make it think differently.
Sinclair also says Which? is more than welcome to join AMI if it so wishes.
Which? is launching the service later this month and says it follows feedback from its members who said they were unsure of where to find an impartial and trusted source of mortgage advice.
Sinclair also told delegates this morning that AMI fully supports the Council of Mortgage Lenders in its fight against the Mortgage Market Review.
AMI expects a European directive on the mortgage market to be released early next year, which he says will supersede any action from the FSA.