Survey shows 55% brokers plan to be directly regulated

Research by the The Mortgage Business shows that 55% of brokers say they plan to become directly regulated while 45% say they aim to become appointed representatives.

The survey was conducted amongst 530 mortgage brokers in the run-up to mortgage regulation kicking off in October 2004.

The questionaire found that 30% are still undecided as to what kind of panel they would like to operate, and of these, just over a third will make their decision by December 31 2003 and 32% will not make a decision until just before October 2004.

Of those who choose to become DR&#39 s and who knew what kind of panel they wanted, almost 60% said that they would operate a whole of market panel of lenders, with just 10% choosing a multi-tie panel.

Those that would like to be appointed representatives were asked what would influence their decision on choice of principal. Fees, compliance, products and existing tie relationships all came out as equally important.

Bill Dudgeon, managing director of TMB, says: “Conducting this research has thrown up some interesting results – compliance would appear to be an issue for brokers probably because it can be time consuming and a lengthy process.

“However, having said that, it is interesting that there is an almost 50/50 split between becoming authorised and appointed.”