She added that, to address this issue, kick backs and incentives paid to salespeople from a “recommended” adviser on a new build site that uses a government scheme “should be banned”.
“That would mean these tactics are stopped and clients are then using who they want and getting the best outcome for them,” she explained.
Additionally, Whenthebanksaysno.co.uk managing director, Emma Jones, said: “To pressure buyers into using a broker firm that sits within, or is tied to the house builder, just doesn’t sit right under the consumer duty rules the FCA has been banging the drum about.
“Many buyers, especially first-time buyers, don’t know who is being honest and who is unfortunately prioritising their pocket over the right thing for the borrower.
“This practice of conditional selling needs to stop. It may be that now is the time for builders to lose control of choosing preferred broker firms as the go-to for their sites.”
Responding to this, a spokesperson for Persimmon Homes said: “We apologise for any misunderstanding in the information conveyed by our sales adviser.
“To be clear, all customers are able to engage a mortgage adviser of their choosing to purchase homes privately or in connection with Homes England products.
“There are Homes England rules that govern which services an adviser may charge for although none of our panel of advisers charge fees connected with affordability checks or advice.
“We are unable to comment on fees charged by third party advisers that customers may wish to use.
“Naturally, fees can be charged in the usual way whereupon a broker has been engaged by a client to submit a mortgage application, irrespective of whether this is a private purchase or Homes England product.”
tom.dunstan@ft.com
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