Just under nine in 10 intermediaries favour direct authorisation over appointed representative status, research reveals.
A study by Mortgage Promotions in association with Mortgages PLC of a sample mortgage brokers also that seven in 10 of the respondents will make their final decision about their future status during the period between December and March next year.
Some of the key services identified by brokers as being important include a direct access lending panel, provision of compliance and training support and access to packaging facilities.
Nick Baxter, managing director of Mortgage Promotions, says: “Although the sample for this research was less than 100 brokers, the FSA's own straw-poll research undertaken at the recent Mortgage Event supports our findings. When they asked brokers attending their seminars what they intended to do in terms of their future status, approximately two thirds expressed a preference for direct authorisation.
“These results are in stark contrast to the many pundits who predicted between 60% and 70% of brokers would opt for appointed representative status. It's encouraging to see that brokers are waking up to the fact that direct authorisation is not as scary as it has been made out to be.”
Julian Wells, head of marketing at Mortgages PLC, says: “Hopefully we will not see a heavy skew in favour of either appointed representatives or directly authorised brokers. This will make for a much healthier position for everyone involved in the mortgage market.”
Mortgage Promotions will be providing a range of support services for brokers who elect to become directly authorised after Mortgage Day next year. The services will be provided free of charge.