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Use the mortgage broker of your choice, not the one your estate agent recommends.

Monday, January 09, 2017 3:26:00 PM

THE Financial Conduct Authority (FCA) look into the relationship between estate agents and mortgage brokers as part of their review of the mortgage industry.

Some agents are paid commissions for referring customers to mortgage brokers they work in partnership with.

The review of the mortgage market which was first announced in May by the FCA, said that it would look into relationships between brokers, lenders and estate agents.

There is concern that these relationships were creating conflicts of interest as consumers were paying more and not necessarily having options when pressured to use particular firms.

Some estate agents imply that using a particular broker might be "necessary to view or secure a property," the report said.

This is not illegal, but Mark Hayward, of the National Association of Estate Agents, said that they did not support it.

"It's not fair that buyers should be penalised if they don't use an agent's in-house broker and consumers should not be made to feel that without using the recommended financial services provider they will lose out on the home they want to buy," he said.

The regulator also said that it would examine whether the Mortgage Market Review, which was implemented in 2014, was unfairly excluding some people from buying.

The new rules were implemented to prevent mortgage lenders from offering loans to those who could not afford them, and wiped out the riskier mortgages that were being sold before the financial crisis, such as offering a borrower more than the value of their home. Many lenders have restricted their loans to borrowers over the age of 65, leaving even those with excellent credit ratings and gold-plated pensions unable to buy a home or extend their existing mortgages.

More customers now use brokers to secure mortgages since the new rules were introduced. The proportion looking for an adviser to organise their mortgage has risen from 67% in 2008 to 97% in the second quarter of this year.

This is because stricter rules mean in all but the most straightforward cases borrowers need help finding a suitable mortgage.

Here at The Mortgage Brain we work hard to establish relationships with as many lenders as possible ensuring that our clients get the best deals for them.

If you are currently looking to buy a property and have not yet agreed your mortgage we would welcome the opportunity to discuss your requirements to see if we can help you.

For more information about our services please visit www.themortgagebrain.net, call 0333 340 8888 or email info@themortgagebrain.net.




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