Bankhall has hit out at mortgage networks, saying that they limit consumer choice and should not be seen as a long-term solution by brokers.
The firm believes that direct authorisation is preferable to appointed representative status in the long term. It says the only way to achieve true independence, which is in the best interests of the consumer who needs to be made aware of all the deals available, is through direct regulation.
Group sales director Shaun Godfrey says brokers should consider joining Bankhall Point One, a halfway house where they can benefit from appointed representative status initially while getting training and support to help them become directly authorised within a year.
He says: “We hope consumers will clarify with their mortgage broker that they are directly authorised by the FSA from the outset or at least that they are not restricted by their principal to recommending just a few favoured lenders regardless of the appropriateness or competitiveness of the mortgage deal.”
Intelligent Finance head of intermediary sales Brian Ewing says: “Borrowers expect their mortgage broker to be impartial and to be able to recommend the best deals on the market at a given time.”