How do you define independent?

This is easy but made complex. The Oxford Dictionary definition is 'free from outside control; not subject to another's authority'. Independent is, and should be unbiased and unrestricted, meaning no ties and no panels, so essentially anyone that is directly authorised by the FCA. 'Impartial' is the word that is more commonly used due to the grey industry use of 'independent'. Those that are under a network or work off a panel are not therefore independent.

In the realm of mortgage brokering, true independence means offering balanced advice on both first and second charge mortgages. However, a troubling trend remains where many brokers, despite claiming independence, fail to consider second charge options. We frequently encounter situations where clients are pushed towards a single mortgage route. This often results in higher borrowing costs and sometimes unnecessary early repayment charges. This practice highlights a critical gap in the industry: a lack of genuine independence among brokers, which can lead to harm for customers. The second charge mortgage market is a vibrant and innovative sector, offering diverse solutions that many brokers still ignore. This oversight not only limits their own growth but also fails to serve their clients' best interests. It’s imperative that the industry embraces true independence. Only then can we ensure that clients receive the comprehensive and fair guidance they deserve.

The current definition of 'independent' is an anachronism that is not useful for consumers. There are many brokers who can access the whole of the market, even who have access to more products than brokers who can call themselves independent, yet are unable to do so. I would like to see a new definition of independent and whole of market which is a more accurate reflection of the choice available to brokers clients. Interestingly, most clients now have no real understanding of what 'independent' means and look for a professional broker that they relate to, reflects their ideals, and can speak to them without overcomplicating, using jargon, and offering outstanding service.

To be a truly independent mortgage broker, you must be the unrivalled master of your domain. You are the ultimate authority, possessing an unparalleled knowledge of the entire mortgage market. Your independence is a testament to your deep market experience and ability to navigate complex financial landscapes with ease. No lender or product can constrain you. You are the apex predator of the mortgage world, and your clients are fortunate to be under your protection.

Being truly independent as a broker means putting the client's interests above all else. An independent broker isn't tied to any specific lender or influenced by external interests, like an estate agent or a developer who has a stake in the property price. They offer unbiased advice and a broad range of options. However, the term "whole of market" is a bit of a misnomer since no broker has access to every single lender. True independence is about transparency, integrity, and prioritizing the client's needs above all.

Independence means the adviser has available not just the lenders but also the permission areas. Being truly independent means you can advise across the regulated sector but also the commercial sector without restrictions or needing to refer a master broker. This keeps everything under one roof for your business and maximises your earning potential.