Association of Mortgage Intermediaries director Rob Sinclair has expressed concern over Which?’s entry into the mortgage advice market.
Speaking at the Mortgage Business Expo in London today, Sinclair highlighted the fact the consumer body is using its remuneration structure as a marketing tool. Advisers will be paid a salary although Which? will receive proc-fees if the lender offers them.
Sinclair said: “I’m always cautious about people when they try and persuade me they pay someone a salary and commission does not matter. It was something Equitable Life argued and look where they ended up.”
The firm was given FSA approval for the service earlier this week and it will launch later this month.
It will be offered free to Which? members and their friends and family. Which? advisers will include direct-only mortgage deals in their whole-of-market coverage.
He added: “I’m feeling very nervous about Which? but also they are being very brave.”
In the past Which? has criticised the quality of mortgage advice from advisers, but Sinclair says actually giving advice could change their perspective.
He said: “When they get their first complaint and when their first case goes through, they will perhaps feel how we feel and perhaps that might change their thinking.”
However Sinclair said AMI would welcome a membership application from Which?. He said: “If Which? applied to be members of AMI, they would be most welcome.”