Brokers' future is assured
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With 2010 now in full swing, Mortgage Strategy asks the industry how it expects the next year to pan out in this week’s Cover Story.
Will we see a double-dip recession or an increase in house prices and a similar rise in gross lending? Let’s hope it’s the latter rather than the former because the mortgage market needs all the help it can get at the moment.
Without doubt the biggest event of the year, with the exception of the general election, looks set to be the conclusion of the Financial Services Authority’s Mortgage Market Review.
Some in the market are concerned that the regulator in looking to widen the responsibility of lenders could lead them to question why they need to use brokers. Likewise, with lenders looking to use their current accounts to better cross-sell their product ranges there are worries of a renewed onslaught from banks encouraging consumers to go direct.
But before we reach for a knife and get to work on our jugular veins let’s remember the vital role brokers play in helping consumers get mortgages. If a client has three options - a special mortgage from their current account provider, a low headline rate deal with a £2,000 fee or a high headline rate deal with a £500 fee - they need someone to advise them how to work out the total cost. The mortgage market is still complicated and a minefield for consumers to navigate.
The USP of brokers has never been to do searches on sourcing systems but rather to provide advice and help in finding the best deals for clients’ specific needs.
So whatever the next year throws at the industry, as long as consumers still need mortgage finance to buy homes in the UK the future of
brokers is assured.
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