Consumers ‘losing out’ by going direct

Significant numbers of consumers are losing out by opting to go direct to providers of financial services, mortgages and loan products, rather than seeking impartial advice from professional advisers.

This is the experience reported by a large number of advisers following a survey carried out by cherryFind (cherryfind.co.uk), the online searchable database for consumers seeking financial, mortgage and insurance advice. In the survey advisers were asked if they were aware of consumers who had lost out financially by opting to go direct rather than seek their advice.

56% of all those advisers who answered said they knew of several individuals who would have been better off if they had opted to use the services of adviser. 21% said they had seen so many cases - where consumers had lost out by going direct to the provider - they had lost count.

In examples of such cases, advisers said they were dealing with many individuals who having gone direct initially were now looking for professional advice to ensure they chose the most suitable product for their needs.

One respondent to the survey said: “I’ve had something like eight people who have had to come to me once they are in a mess. One lady had signed up direct to a very expensive long-term fixed mortgage rate and is now stuck there. Another gentleman is currently being repossessed after taking out a deal direct that wasn’t suitable for his circumstances.”

Donna Hopton, Director of cherryFind, commented: “There have been an inordinate number of product and criteria changes in the financial and mortgage marketplaces, especially in the last few months. The large cuts in Bank Base Rate coupled with many lenders providing mortgage products direct which have not been available to advisers, has only added to the level of confusion many consumers are feeling. This has clearly resulted in a significant number of consumers opting to go direct when they could have covered all bases by using an impartial adviser. Many advisers listed on the cherryFind site are dealing with clients who initially went direct only to find they would have been better off using an adviser and sadly it is not always possible for damage to be undone.

“cherryFind offers consumers access to advisers who have promised to act in a professional and caring way and who are committed to conducting detailed analysis of their circumstances before making their recommendations. At a time when many people’s finances are tight, significant numbers of consumers are losing out by going direct rather than covering all options through an adviser. cherryFind offers consumers a simple and effective way of accessing advice which could make a huge difference when it comes to the cost of a mortgage or other financial product. We would urge all consumers to use cherryFind and to take advice from advisers who are committed to making sure they are not left out of pocket.”

cherryFind also offers those consumers who are deaf or hard of hearing access to advisers who have been specifically trained in this area and are keen to help these individuals.

Consumers can search for their local professional adviser by visiting cherryfind.co.uk