The Financial Services Authority (FSA) has published a study into the UK's mortgage industry. This reports there are 'significant failings' when both mortgage lenders and brokers are advising borrowers. These problems are likely to result in yet more major misselling scandals.
The main points the regulator found with the review of 252 firms are –
- 66% of the mortgage lenders it sampled did not have satisfactory processes in place when giving advice to borrowers
- Problems in assessing customers needs, including whether borrowers could afford the mortgages they were being offered
It is sad to say but over the last 10 years there has been an incredible breakdown of trust and quality of advice offered by firms operating in personal finance world
Steps To Take To Get The Best Mortgage Deals
One reason the banks and other finance companies are able to make massive profits is that they're selling to an uneducated client base. That is not to say that their clients are stupid, rather they're uneducated in the products and services they're buying.
- The secret to getting the best deals is to do some of your own independent research and homework into what you're buying
- By doing this you'll easily be able to spot what's value and what is overpriced, alongside some of the smallprint tricks these companies might try to pull
- We would also suggest that you never do business with the first firm you seek advice from. For example, if you wanted to buy a mortgage then it would be worthwhile to visit at least a couple of banks and a couple of independent mortgage brokers at a bare minimum
- Finally, never rush into any finance type deal. There’s so much competition for your business that those who intelligently shop around stand the best chance of buying correctly, and more importantly at right price
Summary
Getting the best for your money is all about education.
Sadly, many get turned off by this thought because a) it involves some work and b) the subject matter is often not the most riveting. But it is critical to realise that by investing time into educating yourself you can often get a great financial return, that is cheaper monthly mortgage payments alongside the possibility of repaying a mortgage a few years earlier.
Most people want more money in their pockets and this can be achieved two ways. Firstly, earning more or secondly, by saving more.
Education is an indirect way of having more money because it can save you money....
