Association of Mortgage Intermediaries responds to Which? Survey

The Association of Mortgage Intermediaries (AMI) has today responded to a Which? study of mortgage advisers. The study found that although there was a general failure among mortgage advisers to give acceptable mortgage advice those that performed best were independent mortgage advisers. Of the four that passed all the consumer tests three were independent advisers.

Chris Cummings, Director General of the AMI, said, "We feel it would have been beneficial to the report had Which? clearly distinguished between sales and advice. The headline title does not differentiate between these two defined channels and risks damaging the reputation of the independent advice community.

Consumers must be made aware if they are being sold to, or receiving advice. Independent mortgage advisers provide advice that is wholly focussed on the individual consumer's needs. In contrast, banks and building societies may offer only generic information. Our recent research showed that 8 in 10 consumers chose to use an intermediary precisely because of the value of advice.

During difficult periods in the market, consumers need advice more than ever. Industry figures show that consumers have turned in increasing numbers to independent advisers - the number of first time buyers using an intermediary increased to 82.5% in the first quarter of 2008, 10% higher than in quarter one 2007."

The report states that Which? "would always recommend that you speak to an independent adviser to give yourself the best possible choice of mortgage deals." Which? also calls for lenders to ensure they offer their best deals through advisers to help consumers shop around for the best mortgages from the whole of market.

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