Brokers do a great job, so let's start shouting about it

22 March 2010

Consumers can get fantastic mortgage advice from brokers but could more be done to raise awareness of the value of this impartial and expert advice?

Should more effort be put into making it clear to the public precisely what they can expect when they choose a broker?

Given the fragile nature of the economic recovery and the potential interest rate shock facing millions of borrowers this is the ideal time to promote the benefits of intermediary advice.

After all, with so much uncertainty around more consumers than ever are in need of good mortgage advice from qualified experts.

But the problem is it’s difficult to promote something that is not well defined.

I believe there is an opportunity for brokers, distributors and lenders to come up with a clear definition of the scope of advice and standards clients should expect from mortgage brokers while helping them to understand the advantages of seeking independent advice.

For example, we could make it clear that the advice brokers provide covers differences between main product types and providers.

We could also point out how it details total costs and includes interest-only options, stress testing and advice on what happens when interest rates change.

The whole sector could get involved in to promote the sort of services the best brokers already offer

Borrowers want the best products but many also value the sound advice of someone they can trust.

They want someone who can help with form-filling and chasing as well as hold their hand through the process.

We would like to spark a debate about putting together a set of advice standards and benefits that showcase what brokers offer. We would also like to look at ways in which this could be launched as a consumer-facing campaign to show the public why they should choose brokers for mortgage advice.

Don’t worry, we are not talking about more red tape here - we understand that intermediaries already work under tight regulation. Nor are we suggesting significant changes to what brokers do.

What we are proposing is an industry initiative that the whole sector could get involved in to promote the sort of services the best brokers already offer.

We are sure that everyone with a stake in the intermediary mortgage market wants to help consumers understand just how valuable the service brokers provide is, so we should work together to tell them.

Since launching as an intermediary specialist lender last year we have taken an active role in supporting development of the sector.

That’s why we believe that developing an initiative which ensures consumers fully understand the benefits of opting for intermediary advice could be a step forward in promoting the sector as a whole.

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