Warning on fee for service charges
In a red-hot mortgage market, a growing number of clients are using an adviser to source a low rate, and using that rate to negotiate better terms with their bank.
After ditching the adviser and sticking with their bank, some borrowers have been shocked to learn they are subject to "fee-for-service" charges, the Financial Services Complaints Limited boss says.
"More people are sourcing a loan through an adviser, deciding not to proceed, and staying with their existing banks. However, in these situations, advisers are perfectly entitled to charge for their time," she adds.
"From time to time we see clients acting badly, and trading off advisers with their banks. We've seen some complaints about it as clients are unaware they could be charged a fee if they didn't proceed with the loans."
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