An undercover probe by the magazine found that 41 of 50 advisers failed to provide one or more pieces of key information, while 35 didn’t do a proper check to ensure customers could afford the repayments.
Two thirds attempted to flog ill-suited insurance products alongside the mortgage, with one broker using Kylie Minogue’s recent breast cancer diagnosis as a way of selling CI cover.
Just four out of the 50 advisers – all from banks, estate agencies or IFA firms – passed the Which? Money test. Three of the four were IFAs while the fourth was an Alliance and Leicester employee.
Which? Money editor Martyn Hocking says: “Listening to people’s needs and giving tailored advice should be the bread and butter of a mortgage adviser’s job, but too many of the advisers that we visited took a one size fits all approach or seemed as concerned with selling an insurance policy on the side.”
AMI director general Chris Cummings says while it’s grateful for Which? highlighting for consumers the difference between sales and advice, it would have been beneficial had the report clearly distinguished in its findings between the actions of independent advisers and those who sell products.