Banking crisis increases demand for brokers
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The recent global banking crisis has damaged borrowers’ confidence in their ability to get the right mortgage for their needs, but they still have faith in the power of independent financial advice, according to research carried out on behalf of Kensington.
Nearly half of respondents, 44% said they now have less confidence in their ability to get the right mortgage product for their needs as a result of the banking crisis. A further 27% said they had the same amount of confidence, and only 2% said they now have more confidence than they did prior to the downturn.
However, consumers are still reassured by independent advice, with 45% saying they felt an independent adviser was best placed to find them the right mortgage – nearly twice as many as bank or building society, which was the next most popular option favoured by 25% of respondents.
The research was carried out among more than 2,000 people by YouGov on behalf of Kensington in March this year.
Charles Morley, head of sales and product development at Kensington, says: “The landscape of our market has changed considerably over the last three years so it is not surprising that consumers, particularly those whose circumstances changed during the recession, are confused by the mortgage options that are available to them.
“Fortunately borrowers still recognise the power of independent financial advice and intermediaries have the opportunity to help rebuild trust by finding products with the right criteria to suit their clients’ circumstances. Kensington understand this, which is why we have a range of products to suit different circumstances and publish our criteria upfront rather than hiding behind an automated credit score.”
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Readers' comments (5)
Anonymous | 11 May 2010 11:34 am
Marvellous. Banks are allowed by the FSA to contribute to a catastrophic financial market collapse which almost ruined the whole of the banking system. As a result the general public lose confidence so the FSA then allow the very banks who contributed to the collapse to offer better deals to customers who deal direct, despite having no confidence in the institutions they are dealing with!! Unfortunately money talks at the end of the day. TCF needs to be looked at by the clowns who regulate the industry
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Mel Samuels | 11 May 2010 1:32 pm
Surely it is TCF to give a better deal to the customer. TCF is treating customers fairly not brokers, besides brokers are not in a position to complain as the behaviour of some contributed in part to the position we are in now. Where was the TCF when brokers were constantly churning accounts for the lowest rate with no consideration for the fees and charges incurred by the customer.
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Anonymous | 11 May 2010 1:52 pm
How can a regulatory body allow a failed system to swallow up a vast majority of the mortgage population and offer non advised products from their own range only? TCF would mean whole of market advice surely? You cannot blame brokers in general for the mess. Of course there are/were bad apples but this occurs in any industry. Corrupt solicitors and accountants also played a part, if not a bigger one. Why are we clinging to the past anyway? The landscpe has changed beyond recognition, and if anybody thinks that a bank offering a non advised own product only deal to a customer if TCF then we are in the wrong job. It is ironic that anybody looking to carry out home improvements would usually equest more than one quotation, and seek to see previous works carried out for fear of being ripped off, but when it comes to the long term financial commiment to buy the house they will accept the word of a halfwit 'adviser' in a bank. This is the reason why I feel the FSA have let everybody down whether broker or client.
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Rob Jupp, Savills Lending Solutions | 11 May 2010 2:42 pm
Well done again to Kensington for using their impressive PR team to support the Intermediary Community. The re emergence of intermediary centric lending can't happen soon enough. Clients need choice and the strength of the current lending market only gives this to the select group of sub 60 per cent loan to value clients with uncomplicated and uncluttered circumstances.
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Greg Oxenham - MORTGAGE ID | 11 May 2010 5:07 pm
I would like to thank Kensington and their PR department for taking up the baton on behalf of the broker community. What is needed are more hard and fast facts like these and not wishy washy opinions expresses by uninformed trade press journalists needing to justify their jobs while trying to put a shine on their dubious data.
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