“All of these businesses are independent of L&Q and adhere to strict consumer codes, and buyers are not directed to any specific firm. We keep this panel under regular review, based on customer feedback and member performance.”
Persimmon
Another case was reported against housebuilding company Persimmon which was recently accused of not allowing a buyer to use a broker who charges fees.
It involved a fee-charging broker who had been overseeing a client’s purchase of a shared ownership property from a Persimmon site in the East Midlands.
The broker had completed the free affordability check via Homes England but was then told by a sales adviser for Persimmon that Homes England “would not allow buyers to use a broker who charges fees”.
“As the scheme is funded by New Homes England, one of their stipulations on the terms and conditions is that all buyers cannot pay a fee for their mortgage broker,” the sales adviser stated in an email to the broker.
Persimmon therefore suggested that the broker should waive the fee or the application could be taken over by a different mortgage broker.
However, in response, the broker argued that providers “must not require” that an applicant takes out their mortgage through a particular adviser, “irrespective of whether they undertook the financial assessment to ascertain a suitable mortgage level or products”.
As a result of this disagreement, the client was left in a state of uncertainty, having already paid for advice and valuation but not being able to proceed unless the broker waived their fee.
However, Persimmon Homes later went on to clarify that this case represented a misrepresentation of Homes England guidance by the sales adviser.
Speaking on this, Albion Financial Advice director, Dariusz Karpowicz, said: “Misinterpreting and giving false information, as seen with Persimmon, just to secure a commission, is exactly what shouldn’t be happening in a regulated industry.
“This isn’t about integrity; it’s about bending the truth to make a living, and it needs to be investigated, scrutinised, and stopped.
“Unfortunately, this kind of behavior isn’t rare in our industry, and it’s shocking that not enough is being done to address it.”
Meanwhile, Model Financial Solutions director, Hannah Bashford, said: “I'd like to give Persimmon the benefit of the doubt and hope that they have simply misinterpreted the rules instead of this being another example of underhand tactics.
“That being said, this type of practice is still out there as the email shows and it is very worrying as it confuses and worries clients and can leave them upset about their options."
