can someone help me please!!!

LouiseW_3

my uncle has just told me that if i take mortgage advise from an independant mortgage advisor that i will have no comeback if anything goes wrong. whether i take the mortage through them or not. He has said for example if i speak to independent guy tomorrow and he says northen rock is best then if i go to northern rock, he will still get commission regardless of whether i take it through him or not and the northern rock will say that i got no advise from them?

this seems completely wrong to me but he is usually a bit of a pain, just wanted to know if he was right or not!

any ideas or do i need to explain this better?

meanmachine_2

Sorry I don't understand.

What do you mean by "if anything goes wrong"?

If you fail to meet your mortgage payments that's your responsibility.

What's that got to do with the broker? The broker is merely a shop assistant showing you the latest wares.

Could you perhaps clarify?

herbiesjp

If the adviser arranges the mortgage for you then you do have some recourse if things are not done properly.

If he tells you go for for e.g. Northern Rock, and you go direct to the lender, you will then have no recourse

If the adviser arranges the mortgage - he will get a commission.

He you use his advice and go direct, the adviser will not get a commission

meanmachine_2

Clearly the OP fears they are going to be "missold" a mortgage a la endowments.

These days I'm not sure how a mortgage could be "missold". It's up to the buyer to decide for themselves which policy is best for their circumstances, surely?

If I take out an interest only mortgage and find that, 25 years later my property is worth less than when I bought it, am I going to go cap in hand to the government? No. That's the risk with interest only mgts.

LouiseW_3

hi
yes i think he has had some difficulty in relation to endowment mortgages!
when i said if things go wrong i meant he had said if there is something wrong with the advice not if can't meet payments.

i feel a bit happier now that i can go to an independent advisor and get decent advice, i have a feeling where his wife went wrong was to take independent advice on an endowment then go direct to bank/building society to avoid comission then try and claim poor advice from the original source.

will go tomorrow and hope they haven't already accepted offer on the house i want!

thanks

meanmachine_2

Oh I see.

In which case, go to your advisor and take their advice. On such an important matter it would be false economy to do anything else, if you ask me.

EdInvestor

Odd isn't it?

Up until a couple of months ago, mortgages weren't regulated. So you couldn't later claim to have been "mis-sold" if you made a loss.

On the other hand, endowments were regulated, so as from 1988 you could complain if you made a loss ( not the same as a shortfall) and get compensation.

Now mortgages are regulated too.

As a result it seems there are not so many of them about.