With mortgage advisers’ share of transaction levels likely to pass 70 per cent – perhaps it already has – parts of the advisory community may assume the future is secure and the market will continue to move in their favour.
But many of the sector’s highest-profile commentators have warned advisers to fix the roof while the sun is shining (to coin a well-used Conservative Party phrase) and to essentially make the most of these ‘good times’.
This is against a perceived backdrop where lenders – those who run direct operations, at least – are unlikely to put up with this new status quo for very long. Indeed, there are moves afoot already to use technology in particular to reclaim that share lost to the intermediary sector.
Of course, in a highly competitive and complex market and with regulatory changes making a big difference, I suspect most borrowers will continue to use brokers’ advice services. But there is still likely to be a threat somewhere down the line and advisers can face this head-on by providing as full a financial advice service as possible, in areas such as insurance, protection, conveyancing and legal services.
Following this strategy for the long term should put the adviser on a much firmer footing and ensure clients do not divert to a direct option, even when lenders make that potentially more attractive.
These are certainly good times for advisers but they require a long-term assessment and approach – one that will be successful both now and in the future.