'execution-only' basis, what right do you forfeit?

topcat007

Hi all,

Have been reading up on the differences between "advice" and "Execution" only mortgages.

What i am struggling to find is what protection the FCA rules give you which you loose?


"However, we recognise that some customers already know exactly what they want and they will still be able to choose not to receive advice: if you're confident you know the right product for you, you can apply through our online mortgage service at xxx This will be known as choosing a mortgage on an 'execution-only' basis. However, if you choose not to receive advice you will lose the protection of the FCA's rules which otherwise require lenders to assess the suitability of a mortgage product for you."

Thanks for any advice

amnblog

You really are determined not to have help!

topcat007

amnblog wrote: »

You really are determined not to have help!

I got help today

This just came up as a thing so i wanted to know the difference didnt think to ask at the time

amnblog

You would only be going down the 'execution only' route if you rejected the advice provided to you by the source you have opened.

dunstonh

What i am struggling to find is what protection the FCA rules give you which you loose?

effectively the right to complain that the product was suitable or not. It is effectively DIY on your part. If its wrong, then its your own fault and no-one elses.

Thrugelmir

From the FCA.

You may be able to ask a lender or adviser to arrange your chosen mortgage deal without giving you any advice, if you are:

- a mortgage professional with a good understanding of the risks involved
- remortgaging a home to raise money for business purposes
a ‘high net worth individual’, which means you have an annual income of more than £300,000 or assets worth more than £3m

An adviser or lender will need evidence that you fall into one of these groups before they can arrange anything for you. They will let you know what information they need.

If you choose to get a mortgage without advice, your lender or adviser must tell you in writing or in conversation about the legal protection you will lose. This may include the right to complain about how suitable the mortgage is for you.

Probably not what you expected.

amnblog

The quote from Topcat I believe is from a major bank with over 15% of the UK market.

During the Mortgage Market Review the banks spent a lot of time lobbying to avoid having to provide advice. They appear to be still trying to work the angles.

This effectively means we want your business but you hold the risk on the decision.