Worldwide issue warning for homebuyers to think independent
With the housing market beginning to come back to life after the break for Christmas and the snow, Worldwide Financial Planning want people to be on their guard.
According to Worldwide’s managing director, Peter McGahan, there has been an increase in reports of estate agents forcing potential buyers to see their mortgage adviser before being allowed to view a property.
“Whilst most estate agents stay clear of mortgage advice or make referrals to a trusted independent professional adviser, some agents have seen this as a chance to make extra money out of the sale of a property,” said Peter.
“The tip of the iceberg for us came when our mortgage manager, who won FT Mortgage Adviser of the Year, was frogmarched in front of an adviser when he was buying a home to check he could afford it!
“If it’s happening to him then we’re concerned about how many people it’s affecting across the country and how much it’s costing them.”
In order to be aware Mr McGahan wants people to check the agent’s independence for mortgage advice and for life insurance and pension products.
“If they say no to any of these points then you should just walk away,” said Mr McGahan.
“We’ve found a number partner with selected providers, or even just one to ensure they get a bigger commission and revenue stream.
“But as well as giving more money to the agent, it can also cost house buyers in the long run.
“We carried out a mystery shopper test and found that buying life insurance from Friends Provident through an estate agent gave £28,876 less cover than if you’d bought the cover from an independent financial adviser.
“People really need to be aware as buying a home is one of the most stressful things you can go through so before you take advice or packages from an estate agent, stop and think and get a comparison from an independent adviser.”
