The Money Advice Service (MAS) was forced to remove several links from its website after a backlash from angry brokers over web links directing consumers to three advice firms.
The website contains independent advice for consumers, but has been directing visitors to London & Country's website on its "tips if you're struggling to get a mortgage" page.
The website earlier this week instructed customers seeking advice to "search for a mortgage broker at London & Country" and linked to the firm's website.
After being contacted by IFAonline's sister title Mortgage Solutions, MAS removed the link to London & Country from its site, along with links to other commercial operations such as Which? Mortgage Advisers.
The independent MAS service is wholly funded by the Financial Services Authority (FSA) and was given a budget of £45.7m for the 2011/12 financial year.
A MAS spokesman said: "We have reviewed the link and redirected users to unbiased.co.uk. Other links may be considered in due course."
Both Which? Mortgage Advice and London & Country confirmed that they had been unaware of the links.
Steve O'Mara, owner of Moorgate Financial Services, said that it was unacceptable for an independent website to be sending potential clients to a competitor.
"It's out of order that MAS is linking to a commercial broker and sending business their way. There are plenty of brokers out there, yet they're pointing people to one broker. Why not link to the FSA register instead where everyone is listed in the same way?"
Stuart Duncan, partner at Personal Mortgages Service, said: "The website should be operated on a postcode based system so people can find their nearest broker. It's scary to think that MAS can't see that this is a problem."
Lisa Williams, managing director of Keys Mortgages, added: "I have no problem with educating consumers on issues of finance. But, it's an absolute disgrace to be a broker paying for what's meant to be an independent website."
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