24.07.08 by Andrew Montlake

Mortgage Advice and Sales

Yesterday I was in deepest Woodford filming with the wonderful freelance journalist Esther Shaw for MoneyExpert TV. Whilst we were doing our best Richard & Judy impressions, the first question that I was asked was about the latest Which ? survey which highlighted the fact that the quality of advise from mortgage advisers was overall pretty poor.

I have always been a little skeptical about these surveys as it often seems that those conducting them have a conclusion in mind before they start and set out to highlight and lead people into proving their conclusion. Whether or not this is true, and Which ? are certainly a responsible consumer champion, it is also often hard to look at the samples tested.

However, in this case it seems that of the four firms that "passed" the test, three of them were Independent Financial Advisers, which is encouraging. As Chris Cummings from the Association of Mortgage Intermediaries pointed out, this highlights the main difference between "advice" and "sales", and this is a major point.

At various stages throughout my working life I have always had this argument, I am not a salesperson, I am an Adviser. I do not have to sell a certain mortgage product, and like every Independent Mortgage Adviser I offer Advice and recommendation, not just offering a choice from my own range of products or selling what my boss tells me to sell this week.

Another point I want to pick up on is the fact that the Which ? report stated that many of the advisers seemed interested in offering insurance products. My question here is simple; so ?

Surely it constitutes good practice that before someone signs on the dotted line to borrow hundreds of thousands of pounds that they are made aware of the risks involved and how they could best protect themselves and their family from losing their home ?

Of course there are ways of doing this. Again an Independent Adviser will go through the issues and the options available, all the while making sure that everything is affordable and within the applicant’s budget. And what exactly is wrong with using the lovely Kylie Minogue as an example of what could happen when you least expect it ?

One in four people will have to deal with the effects of a nasty illness it is reported, and people would soon complain if the worst happens and they were not made aware of insurance products that could have eased the pressure for them and their family.

This is not about “selling” additional products just to get commission as unfortunately many narrow-minded people feel mortgage advisers do. It is about advising people of their options, alerting them to the pitfalls, ensuring everything is affordable now, and in the future.

The only thing I sell is myself, and The Cobalt Group. I do this because I am passionate about our company and about the fact that I know our quality consultants will give clients the best possible ADVICE in the first instance, and give the best possible choice from all the providers and products on the open market.

Bank staff and those who are tied are only able to provide their current range of products, hence they have to sell. And therein lies the difference.

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