At present, lenders pay a large proportion of the money mortgage intermediaries need to effectively do their job. The alternative to commission is charging clients a lot of money, or doing much less work for them for a small fee. I can’t see how this outcome can be ‘fair’ for consumers who currently have access to a range of advisers, most of whom charge small fees or no fees at all.
We have to be careful to ensure that regulation doesn’t produce outcomes that are significantly detrimental to consumers. Since FSA regulation, mortgage lenders are charging our clients more for products. I hope we don’t end up in a position where brokers need to do so as well.
Via e-mail
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