L&C act in my best interest?

smnberryman

Hi

Quick question about L&C...

I understand they are 'fee-free' so presume they get their commission from the mortgage company.

However if they do so, aren't they liable to 'recommend' a mortgage that gives them the best commission?

Or are they not allowed to do that?

Thanks

dunstonh

They are not allowed to use best commission as research criteria.

If you are concerned about using a commission only process then remove that potential for bias by using a local adviser working on full whole of market availability on fee basis. You pay them a fixed fee and they will rebate any commission as well as including non-commission paying deals.

kingstreet

They will choose the products from lenders who pay a commission.

Commission rates on the high street are very close, with little difference between lenders.

No regulated broker is going to put their career at risk for maybe another 0.1%.

ACG

Im with Kingstreet.

Theoretically it could make a difference but when you look at how little difference it actually makes, its not worth the hassle of checking AND its certainly not worth the risk of being caught.

amnblog

Any mortgage broker that recommends either a mortgage contract or an insurance contract due to a variance in commission is a moron and will soon see their business collapse.

Some brokers do work with limited panels of products and in return get slightly stronger commission rates. But working from a limited panel is a clear business decision which needs to be outlined to the client at outset.