A finfluencer’s social media video discussing a 100 per cent mortgage has been called out as “spreading misinformation” and “misleading” by mortgage brokers.
The TikTok features a user, Abi Hookway Property Investing, discussing April Mortgages’s recently announced 100 per cent LTV mortgage.
“If you’re looking for a house and you haven’t really saved a deposit, don’t look any further. April Mortgages will give you a 100 per cent mortgage which is brilliant,” Abi said.
“They’re also going to lend you seven times your income which is insane. Check out this new lender, this could really get you going on the housing market.”
However, mortgage brokers have criticised the video for providing an overly simplistic view of April Mortgages’s offering.
Chess Mortgages founder, Bob Singh, pointed out that it conflates two different offerings.
“The simultaneous launch of the 100 per cent deal and the seven times income product seem to have got many people excited and many are confusing the two products,” he said.
This references the fact that April Mortgages said, in the announcement for its 100 per cent mortgage, loans would be available up to 4.49 times income.
Singh therefore emphasised that personal guidance is required by borrowers before they embark on the journey.
A similar sentiment was shared by EHF Mortgages managing director, Justin Moy, who described the video as a typical example of clickbait, containing a great deal of misinformation from those not qualified to give advice.
To address this, Moy called on the Financial Conduct Authority to take action, saying that, while the authority has spoken about outlawing such propaganda in the past, “we now need more action”.
“Ultimately, mortgage brokers have to sort out the mess such as this when we receive enquiries from clients who think the impossible can be achieved,” he added.
Meanwhile, Online Mortgage Adviser managing director, Pete Mugleston, said: “So called ‘finfluencers’ on social media need to be careful with the advice they provide on FCA-regulated content.
“Some of the content from these finfluencers is vague and misleading, and in the case of this particular video, it makes the process of getting a mortgage with no deposit seem easy when it’s often anything but.
“The best course of action for anyone looking to get a mortgage still remains to speak to a qualified expert with years of experience, not so-called, and often self-appointed experts on social media.
Finally, The Mortgage Stop director, Rohit Kohli, added: “It’s like the wild west out there with so many finfluencers providing information that isn’t correct.
“The FCA is too slow and weak in its ability to clamp down on this and, quite frankly, until the tech companies feel some pain, they won’t do anything to change things.”
In response, Hookway said: “As a property expert and entrepreneur, I make it my mission to stay across the ever-changing landscape of the industry, from market trends to legislation, and share those insights with my online community.
“At the heart of everything I do is education.
“I believe in empowering people to make informed decisions by surrounding themselves with the right professionals and that absolutely includes trusted mortgage advisers.”
The FCA have been approached for comment.
tom.dunstan@ft.com
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