Feedback on new brokers in mortgage article

Former_MSE_Dan · 17 June 2008 at 8:21PM

Hi folks,

We've updated the Mortgage Advice article, including new techniques to help borrowers search as many deals as possible. Part of this included adding in two new companies, Mform and Mortgage Monitor.

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback

If you use either of these while searching for a mortgage deal, please let us know your feedback.

Cheers

Dan

verbatim_2 · 12 September 2008 at 11:51AM

I just called Mortgage Monitor and they were good in advicing me regd my current lender and mortgage and also gave me a few figures if i needed to buy my second home on a repayment.

Leon_W · 12 September 2008 at 2:44PM

Oh dear Oh dear.

Yet another company that thinks its above the rules that apply to every other broker I know.

Take a look at Mortgage Monitors website www.mortgagemonitor.co.uk . It clearly holds them out to be "independent" when in actual fact they are not.

They are whole of market brokers that receive a fee from the lender so they will not be recommending the likes of HSBC etc. To call themselves "independent" they HAVE to offer a fee paying service, which they don't.

If they cared to look in the FSAs MCOB handbook they will read this.........

6. What do you mean by 'independent'?

You must not hold yourself out (including advertising your firm) as acting independently in providing information or advice to customers unless you intend to:

provide your service wholly or predominantly based on the whole market; and
give the customer the choice of paying by fee for that service.

So if you advertise your firm as independent you must state your fee prominently. See also Question 5 about 'Stating information about your Fees'.
You can find more details on independence in our Handbook - Mortgages and Home Finance Conduct of Business Sourcebook, Chapter 3 at 4.3.7R.

So therefore Mortgage Monitors first point of interaction with prospective clients is, in fact, miss leading and goes against the FSA Treating Customers Fairly initiative.

Be it on your head when someone complains that they thought they were getting an "independent" service when they were not and MSE was carrying the "advice"

Regards

tony9239 · 14 September 2008 at 5:01PM

I have to correct an error in Leon W's post regarding Mortgage Monitor where he claims they are not truly independent because they don't charge fees for advice and will not recommend customers to go direct to lenders like HSBC.
It's true they don't charge fees but they do advise clients if they could get a better deal directly with lenders and recommended 16 clients to do just that in August 2008 alone.
While this may not tally with the FSA handbook it is much the fairest way to treat customers and ties in with MSE's views on the matter.
As Martin says on this site: "my preference is don’t pay a fee if you don’t have to, thus you want to find a ‘whole of market’ fees-free broker. This means it makes its cash from commission but is regulated to search out a good deal from a wide range of lenders. You'll note at no point have I used the word 'independent', that's because with mortgage brokers that term's got some slightly strange regulation behind it."
I am not a mortgage advisor, but I do know the people at Mortgage Monitor who explained to me about the 16 clients sent directly to lenders in August.

toonfish · 14 September 2008 at 10:52PM

tony9239 wrote: »

I have to correct an error in Leon W's post regarding Mortgage Monitor where he claims they are not truly independent because they don't charge fees for advice and will not recommend customers to go direct to lenders like HSBC.
It's true they don't charge fees but they do advise clients if they could get a better deal directly with lenders and recommended 16 clients to do just that in August 2008 alone.
While this may not tally with the FSA handbook it is much the fairest way to treat customers and ties in with MSE's views on the matter.
As Martin says on this site: "my preference is don’t pay a fee if you don’t have to, thus you want to find a ‘whole of market’ fees-free broker. This means it makes its cash from commission but is regulated to search out a good deal from a wide range of lenders. You'll note at no point have I used the word 'independent', that's because with mortgage brokers that term's got some slightly strange regulation behind it."
I am not a mortgage advisor, but I do know the people at Mortgage Monitor who explained to me about the 16 clients sent directly to lenders in August.

So MSE has taken a level above the FSA - I've seen it all now. Wonder ho wmuch this non-compliant company are making from being recommended by this site, and 2 brand new posters singing their praises. It stinks

dunstonh · 14 September 2008 at 11:09PM

If a company says they are independent then they should comply with the rules regarding using the term independent. Those rules are set by the FSA. Not MSE. The Q&A section makes it clear that they cannot be independent if you use the FSA classification. The only one that matters.

Can I ask, what this company does that most of the UK's other mortgage brokers don't do which makes them so worthy of being promoted by MSE? (seeing as their site makes a point being mentioned by MSE).

FraudBuster · 14 September 2008 at 11:47PM

While this may not tally with the FSA handbook

...............................................

Leon_W · 17 September 2008 at 7:09PM

Tony

Sorry I've taken so long to reply to this topic.

I have to correct you I'm afraid, not you correcting me.

Any mortgage broker knows this particular rule inside out because it is the first thing you have to consider when promoting your services, so I do not believe for one minute that Mortgage Monitor are not not aware of this rule.

I too referred a couple of my clients directly to lenders last month so can I now claim that I am independent on my website ??? Of course not. In this business you either "tally" with the FSA handbook or you are in breach of it, no grey areas. Mortgage Monitor are clearly one million percent (a Louis Walshism) wrong and it needs to be corrected. I am certainly not having one rule for one and another rule for somebody else, so I will continue to check the site, and if changes are not made I will make representations to people who will enforce a change.

Regards

Dan_1976 · 17 September 2008 at 7:45PM

LOL This is why MSE should not push companies.

They have to offer a fee paying option to say they are independant. Has anybody seen the KFI of this company??

Qual123 · 17 September 2008 at 9:52PM

KFI? or IDD or am i out of date again already?

If there is a link on this site for mortgage monitor does that maen MSE is making money by advertising a non-complient company? interesting? And there was me thinking that MSE had the consumer's best interests at heart!!

sarkin · 17 September 2008 at 9:57PM

toonfish wrote: »

So MSE has taken a level above the FSA - I've seen it all now. Wonder ho wmuch this non-compliant company are making from being recommended by this site, and 2 brand new posters singing their praises. It stinks

They a paid a big fat wedge of cash for a link direct to thier web site,which Martin rightfully trousered.

Feedback on new brokers in mortgage article

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