Leader: Drive for definition

22 March 2010 | By Robert Thickett

Today Mortgage Strategy is kickstarting a campaign to hammer out a definition of the advice process provided by brokers.

The brainchild of Platform Home Loans, and with the backing of the Association of Mortgage Intermediaries, the campaign aims to come up with a definition for advice to better advertise to consumers and the general public the vital role that brokers play in helping them buy their own homes.

Forget the fancy sourcing systems - the unique selling point of any intermediary is the advice they provide to consumers. Because although the number of products may have dwindled over the past three years, making it on paper easier to choose a deal, it’s possibly never been harder for many clients to get a mortgage.

From advice on the best rate, through judging whether the client can afford their dream home, assessing which lender will provide the loan in the time needed, to referring them to legal experts, surveyors and so forth as required, brokers are a big and important cog in the nation’s housing market.

And the by-product of this campaign is that it will also clarify what consumers get direct via lenders’ branches. The Financial Services Authority last week talked about paying a closer eye on the advice provided in branches. But surely the best bet would be to stop lenders using the term ’advice’ in the first place?

But we don’t want to prejudge the campaign - we want to find out what you think. It’s your industry. To have your say, please email Robert.thickett@centaur.co.uk.

UK mortgage brokers provide a fantastic service to consumers. What Platform, AMI and Mortgage Strategy want is a manifesto to define that specific advice process, so brokers can better market their services to consumers.

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