Brokers told to sell long-term deals

John Wriglesworth, managing director of the Wriglesworth Consultancy, claimed at the recent Mortgage Business Expo that brokers should focus on long-term fixes for clients. He claimed that intermediaries should not focus on selling two-year loans and short dated mortgages, as to sell short-term mortgages qualified as mis-selling.

However, Danny Lovey, of The Mortgage Practitioner, was critical of the comments, and stated that Wriglesworth should ‘think through his comment on this, take an asprin and go and lay down in a dark room and not come out till the feeling goes away’.

Lovey explained: “He has made this point before, but on the contrary, I believe that you are likely to be mis-selling if you sell something that is unsuitable. All sorts of things can happen, especially if you are dealing with young people who are applying for a mortgage as their circumstances can change, and if they are in a long-term deal and need to get out of it at any point before the fixed period is over, they face early redemption penalties.

“This opinion is ludicrous, and during his presentation I made a stand by telling him what he said was complete rubbish. You should sell what is suitable for your clients’ needs and give them advice to the best of their situation.”

Richard Farr, director of the Association of Mortgage Intermediaries (AMI), commented: “I think that for anybody that’s in business, that wants to grow their business and put on bottom line, good advice, taking the client’s needs and servicing those needs with a full gannet of products is key. So the more work is done, the more reward is actually earned.”

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