Home loans industry ‘must promote impartial advice’

Providers of homeowner loans must work to promote impartial, independent advice to borrowers, it has been argued.

Association of Mortgage Intermediaries director Robert Sinclair called upon lenders to show a “duty of care” to consumers following the lessons learnt from the credit crunch.

He made the claim at a Financial Services Authority conference being held on the state of the home loans market.

Mr Sinclair remarked: “The regulator and the lending industry must encourage consumer access to advice and more importantly, independent advice, not restrict it.”

He said that mortgage representatives should base future lending decisions on affordability, adding that some home loans products have been “mispriced” in the past.

Elsewhere, Which? personal finance campaigner Phil Jones has suggested that the increased competition being brought in to the financial services sector by supermarkets – which have begun offering products such as loans and car insurance – could be beneficial for consumers.

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