Can you recommend what type of Advisor we would need to see?

Joe_Bloggs

What does 'whole of market' mean in any real sense or definition ?
J_B.

VIGILANT22

dunstonh wrote: »

independent has to be whole of market by definition.

Whole of the market
A mortgage broker who deals with a restricted lender panel can still claim to be whole of the market, so long as its panel is representative of the market. Ideally, in order to benefit from the multitude of lenders and mortgages available, a borrower will want to be in the position of receiving mortgage advice across the whole of the market.

Independent
Under the new regulations, to call itself ‘independent’ a mortgage broker must offer mortgage advice from the whole of the market or a panel that represents the market, plus it must offer customers a choice of how to pay for the service.

http://www.lcplc.co.uk/mortgages/about-mortgage-brokers/independent-or-whole-of-market

Joe_Bloggs

There is an issue regarding the FSA abuse of the word 'whole'. Some say that the definition of the word describes a situation without diminution or exclusion, entire, full.
Perhaps they should have used a phrase such as 'arm waving, generally thingamabob, you know what I mean'.
J_B.

dunstonh

If you think of it as a pecking order, Independent has to offer everything that whole of market does but has to offer a fee based option as well.

In theory, Independent should be best as its the only option that is likely to include non commission paying deals. That is why the mortgage sourcing software that advisers use now include direct and non adviser deals.

The FSA really messed up with mortgages when it came to setting the types of adviser.

VIGILANT22

independent can still be representative of whole of market.....they are not all 100% whole of market....

As for sourcing systems inc direct deals....many networks will not allow advisers to advise on direct deals...how can they?...they're not advising?...the client is going direct, so the network is not taking responsibility for the advice....

herbiesjp

This is one of the areas the MMR is currently looking at.

Joe_Bloggs

I take it that the acronym MMR is Mortgage Market Review and not Measles Mumps and Rubella.
J_B. (Don't you just love acronyms, DYJLA! )

dunstonh

independent can still be representative of whole of market.....they are not all 100% whole of market....

As for sourcing systems inc direct deals....many networks will not allow advisers to advise on direct deals...how can they?...they're not advising?...the client is going direct, so the network is not taking responsibility for the advice....

Independent has to take the FSA wording. You dont have to include every single deal but as the software allows it and there is no reason not to, then it makes sense to. Most independents will use true whole as market as that is the point of seeking out an independent mortgage broker (who are in the minority).

As for networks not allowing it, then that just re-affirms what we already know, some networks are completely useless. The network should work for you. No the other way round. My network has no such restriction (although they too have other flaws).

VIGILANT22

yes exactly and it incs those who are representative of whole of market
how can an adviser advise on a mortgage when they are sending the client direct?
who issues the suitability letter
would you take responsibility for a client after sending them direct to a lender
does your PI cover you for this

dunstonh

how can an adviser advise on a mortgage when they are sending the client direct?

easy. You have all the information available and the research is on file.

who issues the suitability letter

the adviser

would you take responsibility for a client after sending them direct to a lender

yes

does your PI cover you for this

yes.

Remember that the product being bought from an adviser is advice. The liability is with the advice, not the product.