The Association of Mortgage Intermediaries has played down estimates that around 1,000 IFAs might jump ship to the mortgage market after the RDR hits on 31 December 2012.
Simplybiz Mortgages chief executive officer Martin Reynolds last week estimated that there could be around 1,000 more mortgage advisers in the market after the RDR is introduced at the end of 2012, even though core regulation does not directly affect the sector.
He says: “The current number of mortgage advisers is approximately 10,500, we believe that this number could increase by anything up to 1,000 during 2013 as the post-RDR market settles downs. With mortgage lending looking likely to increase next year we could also see a return of more competition within this sector.”
But Association of Mortgage Intermediaries director Robert Sinclair says that while the number of mortgage advisers will almost certainly increase in the wake of RDR, any estimates will be thrown off by advisers who are just reaffirming a professional focus on mortgages as they are no longer qualified to give investment advice.
He says: “I think there are a number of people who are currently doing a holistic advice job where they may be both investment and mortgage advisers who may, come RDR, focus solely on mortgages as opposed to doing investment business as well.”
Because of what is happening in RDR, IFAs may not get the special qualifications and so they will have to give up their investment permissions and Sinclair says he does not expect there to be more people focusing solely on mortgages.
He adds: “There may be some who jump right across but I don’t know if that will be a thousand. We are going to see more people focusing on mortgages without a doubt but the number is a hard one to gauge.”