UK: WHICH? ACCUSES MORTGAGE ADVISERS OF BIAS
Article Abstract:
Mortgage lenders and advisers have criticised the Consumers' Association's 'Which?' report which claims they give misleading information and are biased. Some mortgage consultants perceive the report as too aggressive. However, other independent financial advisers claim the report demonstrates the need for regulation, as some advisers are failing to follow the Mortgage Code. The report claims that 66% of the 48 advisers who met with mystery shoppers breached the Mortgage Code by recommending a deal without assessing the customer's needs, while 33% failed to ascertain the customer's attitude to risk prior to offering advice on repayment products. Lenders including Northern Rock, Halifax, Woolwich and Abbey were criticised for giving inappropriate advice. Incorrect advice was given by many advisers on repayment mortgages, and most failed to explain the money-saving aspects of taking out shorter-term loans than 25 years. An adviser at Bradford & Bingley was the only one to offer good all-round advice.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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UK: Self-regulation's days numbered
Article Abstract:
The recent announcement by the Treasury's economic secretary, Ruth Kelly, aimed at regulating mortgage advice under the Financial Services Authority (FSA), could mean the end of self-regulation in the general insurance and mortgage markets. Particular doubt has been cast over the future of the as- yet un-launched National Association of Mortgage Brokers and Agents (NAMBA), the Mortgage Code Compliance Board (MCCB), the unnamed body that wanted to invest in the Mortgage Code, and the Mortgage Code itself. Most expect all these organisations to be absorbed, to some extent or another, by the FSA.
Publication Name: Financial Adviser
Subject: Business, international
ISSN: 0953-5276
Year: 2001
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