60 Seconds with.....David Copland
Share
You’ve had to take a step back from the market recently. has that helped you refocus?
Yes. Lenders are more concerned about margin and risk and with its controlled distribution the Pink group is in a prime position to capitalise on this. We have two networks with 660 business writers in total, can tranche manage funding lines through our web-based booking system and help with front-end processing through our packaging arm, BDS.
How has having a financially stable parent benefited Pink?
It has been crucial to us surviving the credit crunch and being in a position to prosper as the market recovers. Indeed, in a recent survey we did of appointed representatives it was the number one reason recruits gave for joining Pink. But don’t get me wrong, Skipton Building Society has asked us some tough questions and as a result we have had to cut costs dramatically.
Do you see further network consolidation as inevitable?
Yes, a number of networks are still vulnerable. It’s usually cash flow that brings businesses down and the warning signs tend to be when customers or suppliers are not getting paid. Unfortunately, we have seen a lot of this recently and it’s not a good advertisement for brokers considering AR status. So choose wisely.
What effect has dual pricing and product rationing had on your members?
It’s been a difficult and frustrating time for members. Two years ago lenders were bending over backwards to attract their business but now many are focussing on competing on the high street. Nevertheless, dual pricing has always been in the market - it’s just that it has been exaggerated by lack of competition and mortgage volume in the current environment.
There seems to be a feeling that lenders and the Financial Services Authority would be happier if brokers didn’t exist. What are your thoughts?
I don’t think the FSA or lenders are the issue. To me, it’s all about clients and whether they are getting good and impartial advice. I’m on the side of brokers who give advice to clients over the longer term and against advisers in high street branches who give information only on their own range but are not there in two years’ time because they have been transferred to another branch.
What do you think is the biggest challenge facing mortgage Brokers today?
The lack of competition and funding. Sorry, that was two.
