Giving whole-of-market advice works fine forme
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I disagree with Mike Jones’ letter headlined ’Offering whole-of-market service cheapens brokers’ (Mortgage Strategy June 7) concerning selling both broker and direct products.
I particularly object to his final comment that offering products from the entire marketplace, including those you cannot get the full details of or be confident of service on, “dilutes the role of brokers and ultimately cheapens us”.
I make clear to clients that there are deals I can’t offer them but say I will tell them about these, and I can also help with filling in forms and studying Key Facts Illustrations. I also tell them I will be able to offer better value insurance.
This establishes trust and my referral rate has improved since dual pricing became a significant factor for the adviser market.
I haven’t had any big problems with direct lenders although I did once have a downvaluation with Yorkshire Building Society. In that case, as a member of the society I got the clients a special deal. I was then able to do the next best deal through Abbey where there was no valuation problem.
I also had a case two years ago when a lender’s branch made its life insurance compulsory although this was not on the KFI. In that case the client decided not to proceed anyway because of his fears about the market.
While I prefer to retain control, in some cases the gap is too wide for me to feel I can recommend the best broker deal. But far from complaining about the loss of income I think this gives me more time to write protection business. And in cases where I feel clients need me to make a recommendation or present their case I explain why I’m going through the broker channel.
And by the way, one area where Jones and I agree is that good broker service will always be rewarded.
DES PLATT
MORTGAGE AND PROTECTION CONSULTANT
HUNTER MILLS
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