What went on at Your Move? by Finance News Bulletin

Published: 09/05/07

Homebuyers turning to a mortgage consultant for advice wait for to be recommended a loan that suits them - not one that benefits the consultant or the firm But the emails sent to mortgage advisers of estate manager Your Move suggest this may not have always been the caseLast November, Financial Mail revealed allegations that its advisers were under heavy force to sell certain loans, in spite of of the borrower's best needsIt was alleged that this was done to ensure other parts of Your Move's empire benefited from mutual business generated by the lenders it favoured

In a declaration, Your Move said: 'The corporation notes the allegations in The Mail on Sunday Your Move strongly discards these allegations'There is no evidence to suggest Your Move's mortgage consultants give biased recommendation today But in relation to history practice, its denial appears questionable

After our account, a number of former Your Move employees contacted us And one, who wishes to remain anonymous, has now unearthed aged emails and other documents from his filesOne was the minutes of a meeting in October 2004 A Your Move salesman seems to be encouraging generation to manipulate interviews with borrowers

It seems the aim was to put up for sale NatWest mortgages while appearing to give impartial adviceAnother email old-fashioned 2004 from a sales manager says: 'NatWest are a very significant lender to us

We are looking for a minimum of 11 cases per financial consultant, with two of these going to NatWest Can I remind everyone that we need to support the NatWest at the instant and I will be looking at everyone's contribution by individual monetary consultant

'These documents tell to the autumn of 2004, when tougher regulation of the marketplace was introduced Other lenders and brokers were desperately introducing measures to make sure compliance - while the picture painted of Your Move is of a brokerage listening carefully on advertising NatWest mortgages, with no apparent regard for the quality of recommendation or any impending regulationNatWest was important to Your Move because it was one of the biggest clients of esurv, a valuations commerce in the Your Move group

The emails suggest borrowers may have been sold inappropriate mortgages by Your Move brokersThe company, run by millionaire land agent Simon Embley, does not refute the emails existed Last week, it supposed: 'Your Move categorically rejects any suggestion of mis-selling to its mortgage customers and the electronic mail extracts that the latest allegations are being based on, which are over two years aged, do not constitute evidence of either mis-selling or breaches of FSA regulations We have always worked intimately with a broad panel of mortgage lenders

'Your Move stresses that mortgage products have been recommended to customers only on the basis that the product was appropriate for that customer NatWest said: 'This is clearly a matter for Your Move'Embley made headlines in October 2004 when it emerged that he had been warned by his previous boss, Norwich Union, about inappropriate conduct Other lenders and brokers shown the emails expressed shock that these practices were apparently continuing in the run-up to stiffer regulation

'They did not appear to be treating customers fairly,' supposed oneTwo-thirds of house loans are sold through brokers or advisers rather than by lenders But not all brokers work in the same methodBorrowers first need to know whether they are dealing with a 'whole of market' broker

Their rank should be made obvious at the outset'Whole of market' brokers can scour all lenders' deals, seeking the most excellent for borrowers Other brokers have tied preparations with one or more lender, or sometimes a panel of several dozen, warning their recommendationsBrokers also differ in how they are paid

Some, particularly London & Country in Bath, Somerset, are gratis to borrowers L&C and others like it earn their fee from charge paid by the lender This is recognized as a procuration fee, typically 035 per cent to 0

5 per cent of the go forwardFee-charging brokers, such as John Charcol, pursue de Vere Mortgage Management and Savills Private Finance operate differently They tax a fee direct to borrowers, typically 04 per cent of the go forward

They do not keep this as well as the lender's commission, so in result borrowers are only charged the differenceEven 'whole of market' advisers cannot cover every bend of the market, which at any one time might offer more than 2,000 deals Some lenders have direct-only mortgage deals that are sold by brokersFor instance, the present best-buy fiveyear fixed-rate loan is from Giraffe, a supplementary of Bristol & West

Its speed of 523 per cent for five years is lower than any obtainable via brokers But brokers often negotiate 'exclusive' deals with lendersSo the safest method to be sure of getting the most excellent deal, even where borrowers use a wholeof-market broker, is to seem at best-buy tables or use an online mortgage search such as mform

coukThis is why populace should use advisers who are truthfully independent and that means no conflict of wellbeing with other parts of the business Mortgages from finance professionals and not estate agents is the only way to get the right contract for you

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