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‘Don’t join the industry’ is advice from most brokers

The large majority of mortgage brokers would not consider recommending someone outside of the industry to join, according to Mortgage Strategy’s straw poll last week.

Some 244 people responded to the poll and 192 respondents, a whopping 79 per cent, say they would not advise becoming a mortgage broker.

But London & Country head of communications David Hollingworth says the results are not necessarily the result of an inhospitable working environment and rather a more practical attitude to a complicated industry.

He says: “Now we have reached a point where everyone is fully aware that the mortgage market is not going to be somewhere if you are after easy money. Perhaps some people were wrongly attracted by this possibility in the boom period.

“I don’t think this necessarily means anyone is down on the industry. It is tough and you need to go in with your eyes wide open. It is not going to be a bed of roses with a regulatory backdrop we have got and the persistently tougher market conditions.

“They see lenders tightening up lending criteria and processes getting harder. The amount of admin involved has increased, the regulation is changing. All these things are difficult change to deal with.”

This view on the administrative side of things is shared by Trinity Mortgages product and communications manager Aaron Strutt.

He says: “Things seem to be getting slowly better with the Funding for Lending Scheme. Around 8 per cent of the population is unemployed according to official figures meaning people need the kind of jobs the mortgage industry is currently offering.

“The results could be because brokers who have experience in submitting cases to lenders have run into difficulties. They might be suggesting people just would not like it much.”


Ami decries prediction of further rise in fraudulent applications

The Association of Mortgage Intermediaries has poured cold water on credit rating agency Experian’s claim that the UK will see the highest levels of mortgage fraud on record in 2013. Experian published its latest Fraud Index last week which revealed that attempted mortgage fraud rose six per cent in the third quarter, compared with the […]

Imla reports a pre-tax profit after loss in 2011

The Intermediary Mortgage Lenders Association made a £30,361 pre-tax profit in the 12 months to 30 June 2012 following a round of cost cutting, after suffering a £12,549 loss the year before. The trade body cut its costs by 25 per cent from £82,973 at 30 June 2011 to £61,492 at the end of June, […]

Life after the CML

By Roy Armitage, head of credit at LendInvest Last month saw three-quarters of the membership of the Council of Mortgage Lenders (CML) vote in favour of plans to create a super-trade body, which would see the CML merge with the likes of the British Bankers’ Association and Payments UK. There is little room for misty-eyed […]


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