Borrowers could benefit from advice on mortgages
Officials from the Association of Mortgage Intermediaries have recently suggested that it has now become especially important for consumers to seek advice on mortgages from professional intermediaries such as independent financial advisers, stating that the difficulties facing consumers due to a tightening of the mortgage market could otherwise make things extremely stressful, and could end up costing the consumer a lot more in the long run.
According to AMI officials the average consumer could save up to £2000 a year on mortgage repayments by simply seeking advice and assistance from an experience financial adviser before committing to any mortgage deal. One official from the AMI said: “Intermediaries are able to identify the most suitable product for the consumer at a competitive price.
Analysis of consumer attitudes shows they value this advice much higher than that provided by lenders.”
He added: “In these difficult times it is more important than ever for consumers to access good financial advice. ”
Advisers know their clients and use this insight and their knowledge of the market, to identify the most suitable and most price competitive products for the client.”
The average borrower saves over £900 by going through a suitable intermediary according to the AMI, but it added that some could save much more. Officials from the AMI have been angered by statements from the Financial Services Authority that claim some borrowers could get a far better deal by going direct to a lender.
One AMI official said: “To suggest that a direct deal could be more competitive fails to recognise the service provided by an intermediary. This leads to questions such as, should an IFA tell an investment client that they may get a better deal by going direct? Should a tied adviser refer to the fact that their customer may get a better or more suitable product from an independent adviser?”
Recent additions:
- Base rate stays the same for June
- Asda may enter mortgage market
- Government rescue plan may take time to take effect
- Seller experiencing problems with home buyers
- Mortgage market could continue to suffer for another two years
- Even the government expects house prices to keep falling
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