Are IFA's a con trick?

Whats_your_forte

fred246 said:

IFAs always put their own interests before their customers.

Wow. Sweeping generalisation (in light of the fact lots of advisers giving pro bono advice on these forums).

But if that's the view of people on here, I might step back especially when phrases like con/selling/forced are being mentioned.

amnblog

Putting your own interests ahead of your Customers is a sure fire way to terminate your business.
If 'IFAs' are a 'Con Trick' they will be the first Regulated one.

Mortgage_Adviser

OP, when you did your own research have you taken in to consideration the lender's criteria on how much they could lend you %/Loan to value wise? As it could be that the cheaper product you are quoting may not be simply available to you due to variety of reason's eg you being too young?

Why don't you note the product you have found and ask the advisers why they haven't recommended it for you?

The answer would be either that they don't have access to the lender/products or that they do not believe you can get it and give you the reason why.

Thrugelmir

Tight_Git said:

They have now come up with three different products, all with considerably higher interest rates than the one I found simply by asking Google!
Is this sheer incompetence, or do they have their own agenda?

If you are genuinely seeking advice then why haven't you followed the recommendations up with the advisors. Why do you believe that the rate of interest alone is the best option to meet your desired outcome. You said parameters. What else was a factor besides the interest rate charged. Seems harsh to rant without giving the advisors an opportunity to provide a rationale. 

SonOf

Whats_your_forte said:

fred246 said:

IFAs always put their own interests before their customers.

Wow. Sweeping generalisation (in light of the fact lots of advisers giving pro bono advice on these forums).

But if that's the view of people on here, I might step back especially when phrases like con/selling/forced are being mentioned.

Fred246 is a forum troll.   He rarely posts anything other than anti-IFA messages.   So, don't let a troll put you off from contributing.

Tight_Git

Thanks for all your responses.  At my age (75) I'm not very good with computers, so I'll try to answer all the questions in one go!
What's Your Forte: Sorry, I've no idea what ERC means. When I Google it, I get European Research Council!
Son of: I went through the whole application process three times and each IFA produced a Key Facts list.
Mortgage Advisor: I gave the same criteria to each IFA, namely that my Wife is 71, my house is worth £500,000 and I want £50,000 loan at cheapest rate with any drawdown that's available. I then found a much cheaper product from More2Life and asked the cheapest IFA to obtain that for me. He did so and I have now received the offer as requested, namely £50,000 now plus £70,000 drawdown.
Thrugelmir: I didn't realise I was ranting and apologise if I've come across that way. Yes, I do believe that the lowest interest rate is the best way to minimise the reduction in my Daughter's inheritance. I was offered 3.05, 3.15 & 3.47%, all from IFA's who have whole market access.
 I then found 2.72% on CompareEquityRelease.com which represents a saving of over £10,000 after 17 years.
To everyone: I'm just trying to do my best for my Wife and my Daughter by getting the best deal.  It seems that I'm obliged to go through a broker and wondered why I (with no financial knowledge) can come up with the best offer in just a few seconds on line , but still have to pay around £1,000 for the IFA's advice!

[Deleted User]

The one that gave you the one you asked for, did you ask for an explanation on why this wasn't presented initially? 

fred246

Just been looking at equity release training. They manage to drag it out into a nearly 6 week course. Only IFAs could charge £1000 for filling a few forms in following 6 whole weeks of training.

Tight_Git

Deleted_User said:

The one that gave you the one you asked for, did you ask for an explanation on why this wasn't presented initially? 

Yes, he said I could get more drawdown if I accepted the higher rate.
That's despite me saying that the lowest rate on the initial loan was my priority.
Incidentally, he's reduced his fee by £100 as a good will gesture.
Not sure if this is to avoid any further awkward questions!

Whats_your_forte

fred246 said:

Just been looking at equity release training. They manage to drag it out into a nearly 6 week course. Only IFAs could charge £1000 for filling a few forms in following 6 whole weeks of training.

Best you sign up then as it's only filling forms. But after reading through some of your posts, you might struggle to get PI cover.