Brokers confident they can maintain market dominance

Brokers are confident they can maintain their dominance in the mortgage market over the next year, according to a new Mortgage Strategy poll.

Last month, we reported that brokers had a market share of 69 per cent in the second quarter – 30 basis points off the previous high in Q1 2008.

Brokers have become more dominant over the past 12 months, with their market share growing by over 7 percentage points.

A poll of 370 readers suggests brokers believe they can maintain their dominance, despite lenders actively trying to beef up their technology to attract more direct business.

Nearly four in 10 (39 per cent) believe their share of the market will grow to between 71 and 80 per cent over the next year, while 29 per cent believe market share will be between 61 and 70 per cent.

Ten per cent believe market share will fall to between 50 and 60 per cent, while 7 per cent say it will fall to under 50 per cent.

However, 9 per cent say brokers’ market share will increase to between 81 and 90 per cent and 5 per cent say it will get to over 90 per cent.

London & Country associate director of communications David Hollingworth says: “There are some lenders heavily reliant on brokers and there is certainly scope for others to grow in this area.

“As much as MMR was an issue, in terms of bedding in, customers are aware of the need for advice. They are getting that loud and clear. I can understand where the optimism is coming from. And as lenders look to increase volumes, they will look to brokers.”

Your Mortgage Decisions director Dominik Lipnicki says: “I think the reasons behind these results are two-fold: first, lenders are not good at giving advice and, since the MMR, it is much more difficult to place deals, so the role of the broker has never been more important.

“I also think the brokers we have left in the market are pretty good at what they do; we are better than ever. This won’t change in the next two years.”