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Why brokers must adapt

A recent article in Mortgage Strategy highlighted that the march of direct deals is continuing unabated and they now make up some 54% of the market compared with 2007 when they only accounted for just 22%.

This serves to confirm that the intermediary market is still shrinking. And this is reinforced when you consider that broker-only deals have dropped from their 2007 level of 26% to 18% today.

Defaqto recently published a report which shows that 12 of the top 20 fixed rate mortgages are now only available direct from lenders.

This leaves consumers in an invidious position because unless brokers are able to adapt their business models to offer whole-of-market advice, and more importantly get paid for it, impartial guidance will become unobtainable.

If you needed any more evidence that doing nothing to change your business model is tantamount to commercial suicide these figures should nail it. But the prize is glittering for brokers who can change.

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