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Which? probe points finger at mortgage advisers

Which? magazine is accusing mortgage advisers of flagrant disregard for the MCCB code of practice after an undercover probe found only three out of 39 advisers gave acceptable advice.

It claims that two out of three brokers failed to explain properly how mortgages could be repaid and nearly half gave misleading information.

Seven of the 39 did not mention the Mortgage Code Compliance Board&#39s voluntary code of practice. Some advisers at high-street firms, such as Abbey, Halifax, HSBC, Lloyds TSB, NatWest, Nationwide and Northern Rock, did not make it clear that they can only recommend their own companies&#39 mortgages.

Which? editor Malcolm Coles says he does not expect regulation of mortgages and general insurance to improve the situation. He says: “Some of the bad advice was down to inexperience and poor training or advisers being more concerned about selling protection insurance that pays bigger commission than mortgage advice. Regulation will not solve these problems although it should mean advisers become more accountable.”

London & Country mortgage broker David Hollingworth says: “Most firms are tightening up training in the run-up to FSA regulation but the results from the survey seem to suggest that some firms are failing on very basic areas of mortgage advice and that is very distressing.”


Destini sails in to buy Lifeboat

IFA consolidator Destini is buying the core infrastructure of stricken IFA and non-regulated network Lifeboat in a deal that will see outstanding pipeline commission paid in full. Around 100 RIs will join Destini and between 300 and 400 full-time Lifeboat mortgage and protection brokers will move across to form the basis of Destini&#39s multi-tie offering […]

Axa putting guarantees at centre of Protection proposition

Axa Sun Life is developing a guaranteed-rate product as part of a revamp of its protection proposition due to be unveiled in November. It is believed that Axa has been studying market developments and pinpointed consumer demand for a guaranteed product. Product providers believe consumers have become more keen on guaranteed rates because of the […]

The holy trail

I have read articles that seem to suggest that my adviser is receiving so-called trail or renewal commission that is costing me a good deal in investment returns. Why should I be paying this and how can I stop this being paid to my adviser? You are absolutely right that there has been a good […]

Apcims tells Government to stop blaming savers

The Association for Private Client Investment Managers is calling on the Government to stop blaming savers for not saving. Apcims wants the governmentto make beneficial policy changes instead of pointing the finger. Apcimschief executive Angela Knight says regulatory change should be minimised and the value of advice to be promoted in order to get people […]


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