Work starts to promote the benefits of brokers
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Platform Home Loans is spearheading a campaign to educate the public on the advantages of using brokers for mortgage advice.
MORTGAGE STRATEGY’S NEW CAMPAIGN WE WANT TO KNOW WHAT YOU THINK
Platform, the broker arm of The Co-operative Financial Services, has called on the mortgage industry to back the campaign and help in developing a definition of what it means to give advice.
In response, Mortgage Strategy is launching a campaign called Define Advice to find out what the industry thinks.
Lee Gladwell, director of sales and proposition at Platform, says: “It’s difficult to promote something that is not clearly defined.
“This is an opportunity for brokers, distributors and lenders to come up with a definition of the scope of advice and the standards clients should expect from brokers, while helping them understand the advantages of seeking independent financial advice.”
Platform wants to work with others in the industry to investigate ways of launching a consumer campaign that demonstrates the benefits of using brokers.
The Association of Mortgage Intermediaries has already signalled its intention to back the campaign.
Robert Sinclair, director of AMI, says: “I would be delighted to work with Platform and the rest of the industry to develop initiatives such as this.
n the past, because of the size and complexity of the industry it would have been difficult to do, but now we have fewer players on the pitch it’s an easier task.”
Sinclair says it would be useful for the industry to hammer out a definition of what clients should expect, although he adds that the Financial Service Authority’s Mortgage Market Review may go some way towards creating a standard for advice.
Legal &General has also lent its weight to the campaign.
Ben Thompson, director of mortgages at L&G, says: “Despite pricing in favour of direct channels, customers still elect to seek advice.
his initiative will clarify the importance of the great service offered by brokers as the market slowly recovers.”
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Readers' comments (9)
Bobby | 22 Mar 2010 12:30 pm
Too little.
Too late.
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Bobby | 22 Mar 2010 12:59 pm
It beggars belief it has taken over 2 years and a cull of 70% of mortgage brokers jobs and counting that someone thinks " hey lets put a good word in for the honest, hard working broker ". As I said TOO LITTLE TOO LATE so thanks for nothing. Brokers have fallen from 32000 to 10000 in 2 years and believe me there will be none left in a year. This is good news for the lenders and the fsa as they have been it absolutely crystal clear of their contempt for the intermediary channel. The FSA just want their chums at the Banks to thrive in the future and the lenders who used to love brokers help build up their customer base who now consider them their clients and cut the broker out after the initial rate have cut the throats of brokers. The AMI have done the square root of nothing to help brokers. To be honest as a broker, a good , dedicated broker of nearly 20 years I am passed caring now and would love to get out of this industry at the first opportunity. It has to be the WORST profession in the whole country to be in now.
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Anonymous | 22 Mar 2010 2:18 pm
My god, your class is half empty, cracked and full of swamp water.
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Dan McGeehan | 22 Mar 2010 2:42 pm
Most industry has seen change in the last few years and redundancy. Broker numbers have fallen however according to the FSA not by 22k. If I was to think of people I know in the industry who are no longer working/trading i would say around 15-20%. The big lenders still get most of their business from brokers and if we use Santander as an example it is 80% so it is clear that brokers still have a big part to play. Most of the news stories are positive and whilst we will never return to the heyday of 2006/2007 business will increase slowly as confidence returns to the market.
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Bobby | 22 Mar 2010 3:02 pm
On the rare occasion we get a mortgage away from the banks and lendes dual pricing we have to put up with shameful and appaling service centres from Abbey and the like so its very much 2 fingers. If they valued brokers they would provide a service to us.
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Anonymous | 22 Mar 2010 4:46 pm
Slightly tounge in cheek by Platform if you ask me... Isn't this the same Co-operative group squeezing brokers by dual pricing in favour of their branches?
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Anonymous | 22 Mar 2010 5:01 pm
any help is welcome. things couldnt get any worse. it would be nice if the networks done this for the commission they are collecting. instead they seem to focus on giving more work and working ways to take more.
some people have used the recession to get more money from them in need
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Anonymous | 23 Mar 2010 10:49 am
Dear Fellow Financial Advisers, we have experienced a lot of changes in the mortgage market place and to survive we have to adapt to those changes. Our customers, the public are confused over the issue of advice, it is clear that the majority of our clients honestly believe that they receive the same level of advice from financial advisers and lenders direct. It is possible that the public believe advice is finding the cheapest 2 year fixed rate, but that's what comparison websites and tables do. Advice is so much more than that, would you not all agree. AMI have produced useful statistics on the differences between direct and broker driven mortgages, in terms of complaints and products sold. Will my fellow advisers be surprised to learn that most complaints are directed to lender direct mortgages and that the more expensive products arranged by lenders direct. Anything, anything which highlights what advice is, would be useful and an industry wide campaign would be very welcome. Of course, it is up to us the individual advisers to get this message across to our clients, however a national campaign would back up our individual messages. This campaign will be supported by me.
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Anonymous | 23 Mar 2010 5:19 pm
I agree that we need all the help we can get. The FSA turns a very deliberate blind-eye to the shameful behaviour of lenders and banks. The millions of pounds spent of TCF has been nothing but a paperwork exercise for these organisations. Good, honest advisors were adhering to TCF long before the FSA bought it in. There needs to be a clear distinction between advise and direct and direct organisations must be firce to make this very clear to customers by the FSA otherwise consumer confusion is only going to mount up further.
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