Lenders too sharp to sideline brokers

7 June 2010

Figures from the Intermediary Mortgage Lenders Association suggesting that brokers did almost two-thirds of total mortgage lending in Q1 2010 are heartening.

This confirms that brokers are still an important channel and in a relatively strong position. It also shows consumer demand for independent advice that will make lenders’ next moves interesting.

The Association of Mortgage Intermediaries seems to believe that lenders are prepared to go all out to grab back some market share for their direct channels.

But why would lenders take such an approach, cutting off their nose to spite their face?

Of course, those with direct distribution need to ensure they support their investment in branches but when we see figures of 60% to 80% of lending coming through brokers despite the challenges they have faced lenders would be wise to note how resilient the sector is.

For many consumers shopping around is now the norm. They are savvy and have many information channels at their fingertips so they know it makes sense to ensure the deal they access direct is the best for them, and often the only way to do this is through a broker.

Lenders we speak to are aware of the importance of brokers and the need to work together with distributors to deliver value for all stakeholders.
It’s therefore up to advisers to ensure they are in a strong position to deliver the professional services lenders and consumers are clearly looking for.

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