Beware of moonlighting mortgage brokers

EdInvestor

Citywire

Concerns are growing that people are being sold investment plans when they go to brokers who normally stick to mortgage advice, but are struggling in the market downturn.The public is being warned about the risk posed by mortgage brokers as they dabble in investments, instead of their normal role advising on mortgages.

Consumers should expect their brokers to spell out when they are giving independent mortgage and when they are acting as a tied agent selling investment plans. The trade body warned that the Financial Ombudsman Service would take a dim view of cases where the consumer wanted mortgage advice but was sold an investment.

Wutang_2

Is this a joke?

EdInvestor

No.Why would you think that?

Ian_Griffiths_Halifax

EdInvestor is right to point this out, though I think maybe for a different reason.

Some brokers can give investment advice as well, as they may be a Financial Advisor who has specialised in mortgages for the last couple of years. (Quite often because they were not a very good Financial Adviser, or they thought they could get away from a regulated environment).

The problem isn't that they might not know what they are talking about, but more that the public might have been going to see them because they say they are Independent for giving mortgage advice and so when they have received advice on investment policies they have assumed they are independent for those also. But they may be a tied agent for investment policies and so only have a limited range of policies.