EXPO 2010: 53% of consumers intend to go direct for their mortgage
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Over half of 2,000 consumers poled by intermediary specialist lender Platform answered that they would go direct for their mortgage.
Lee Gladwell, director of sales and proposition at Platform, revealed the findings today at the Mortgage Business Expo in London.
Just 14% of respondents said that they would use a broker with a further 33% undecided.
Gladwell told the audience that the most common reason for consumers’ reticence to use a broker, at 62%, was having to pay a fee.
The reasons consumers gave for going direct was that they saw it as easier, convenient and quicker.
Platform helped kick off Mortgage Strategy’s Define Advice campaign earlier in the year to try and increase awareness among consumers and borrowers about the benefits of using a broker.
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Readers' comments (8)
chris gardner | 11 Nov 2010 3:08 pm
"The reasons consumers gave for going direct was that they saw it as easier, convenient and quicker."
the broker market needs the statement to read
"The reasons consumers gave for using a broker was that they saw it as easier, convenient and quicker."
if consumers feel that brokers make the process longer and less convenient then the writing is on the wall.
As intermediaries we probably have 2 years to turn things around or it curtains.
Well done to platform for delivering this news now - it might make us all think a bit more about where our industry needs to go.
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Swanny | 11 Nov 2010 3:21 pm
Are you reading this FSA
Most clients do not like paying fees.
So get your heads out of your butts and listen.
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Anonymous | 11 Nov 2010 3:40 pm
And of course when they go direct the nice banks won't charge them any fees will they?
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Anonymous | 11 Nov 2010 3:48 pm
53% of consumers will go direct.
50% of 53% will be declined (at least) by going direct.
Therefore 536 consumers will be left twiddling the thumbs; and then realising they should of started with a broker.
Oh and those hour long phone applications are 'convenient' for them to turn around and say 'Mr client, come back in 6 months'.
We'll have to wait and see..
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Maurice Edgington | 11 Nov 2010 3:49 pm
From many years experience of markeing surveys I found that if you ask consumers whether they prefer to buy direct or via someone else they will say "direct". This is because there is a belief that they may become the target of unwanted sales calls and may get a cheaper deal. So I do not believe that this information is of any use unless we know the exact questions put to people. Bear in mind the venue's only purpose is to sell the idea of whoever is exhibiting. People just want free information not surveys...in my view.
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Ivana Sukyabolokov | 12 Nov 2010 4:51 pm
..that leaves 47% of consumers who prefer to get face to face advice right?
out of 10 people:
3 - would ALWAYS use a broker
3 - would NEVER use a broker
4 - can only go direct as they only offer direct!
Come on guys & gals - the writing is on the wall for brokers, get out now whilst your still alive!
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nick johnsion | 12 Nov 2010 5:55 pm
My clients pay a fee for good advice
I offer both direct and indirect deals
Like many .i have many years doing this job and i value what i do as a professional service
I dont agree with the survey to be the whole of the uk just 2000 people polled there is a market for good quality advice
so lets not be negative and believe in what we do as the professionals that we are
Nickj
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Anonymous | 13 Nov 2010 9:03 pm
All of you negative brokers making these outrageous comments my advice is "hurry up and leave the industry" this will leave me even more clients for those of us that actually believe in what we do................ I agree we need to diversify (which i have) and get involved in other areas. if you have a client bank use it. the futures BRIGHT the futures a good mortgage broker.
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