Mis-sold Mortgage Claims > Mortgage News
Independent mortgage advice set to increase as Barclays closes to borrowers
Tue, 01 Feb 2011
In the wake of record fines for mis-selling, Barclays has announced that it will be closing its advice arm, Barclays Financial Planning, with the loss of up to 1000 jobs. It has been decided that the advice model to is no longer a viable financial option to offer its less wealthy clients. This news has been welcomed by many independent mortgage advisers as they see more opportunity in the market to service unwanted customers and a shift in lenders strategy.

It is reported that Barclays stated, "An internal review has been going on over recent months and we have concluded that given the changes to the retail investment marketplace, it is unlikely that this business will be able to deliver a return to justify the investment that is needed."

Industry experts have criticised what some refer to as "dodgy sales staff and sharp practices." It is also pointed out by others that the costs that will be incurred under the Retail Distribution Review (RDR) and proposals contained in the Financial Services Authority’s Mortgage Market Review (MMR) also have cost implications on Barclays and other lenders.

The mortgage advice sector has seen massive consolidation over the last three years following the financial crisis. Those that have survived are adjusting to a new service model to accommodate borrowers who are looking at increasing mortgage rates and a decreasing appetite from lenders to lend.
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