This week’s top contribution is from Derek Compton for his response to the article: FCA must help loyal mortgage customers paying over the odds – CMA.
He wrote: “With regards to mortgages, if the FCA really wanted to stop loyal customers paying over the odds, they would put an end to execution-only mortgage arrangements by lenders.
“All they have done by having these is allow lenders to get around having any responsibility for clients’ new mortgages, and in many cases pull clients away from the adviser who recommended them by offering early transfers.
“They are the McDonald’s drive-through of mortgage arrangement, suggesting that quick is best.
“Does the FCA really want clients to have good advice, because this offers none?
“The chance for clients to just select something themselves from a small choice in a letter with a click online or a quick call is so tempting and saves them time, which seems to be so much more important now than good advice.
“Advice is key. I have just arranged two product transfers for clients who were going to simply take the lowest rate two-year product.
“I estimate that I have saved each one of them over £3,000 over the next five years on what they were going to select.
“Also in one case the loan to values (LTV) being recommended by the lender were wrong and in the other by having the property valued it moved to a lower LTV.
“There is certainly a need for product transfers without credit checks or income assessments, as the clients are already with a lender and their lives can change, but this does not mean the client should not have advice.”