Over 80 per cent of those contacted failed to provide key information about the lending process. The investigation revealed that 35 advisers failed to ensure the individual could afford to repay the mortgage.
Martyn Hocking, editor of Which? Money, said: "Listening to people's needs and giving tailored advice should be the bread and butter of a mortgage adviser's job, but too many of the advisers that we visited took a "one size fits all" approach or seemed as concerned with selling an insurance policy on the side. With mortgage costs soaring it's important people get help to find the right deal from the 3,000 on offer," he added.
The findings highlights the need for consumers to seek independent advice wholly focused on the individual's needs rather than generic information often passed on my banks and building societies. Consumers need to be made aware what they are receiving.
Chris Cummings, director general of the Association of Mortgage Intermediaries, adds "The number of first time buyers using an intermediary increased to 82.5 per cent in the first quarter of 2008, 10 per cent higher than in quarter one 2007."
The report supports expectations of a huge shake-up in the way financial advice is provided and paid for- all advisers would be independent of product providers, able to recommend products from across the market. Advising therefore against in-house sales services at banks and building societies
