Is there any industry more negative than brokers at the moment? Looking at some comments on Mortgage Strategy Online I see phrases such as “the beginning of the end” and “last one out turn the lights off” but the people saying these things have clearly not been looking at the market.
Overall mortgage completions are down, not just in the broker world. Intermediary distributed business still accounts for more than 60% of completions and with low SVRs we just aren’t seeing remortgage activity.
As for proc fees being reduced, the reality is that although lender systems have improved, proc fees have never been reviewed. The fact that the FSA wants us to do more compliance work is hardly the fault of the lenders so why should they pay for it?
Selling an offset product takes no more time than any other mortgage and customers generally have to fill all their savings details in. Yes, they’re more likely to stay with their lender in two years time but aren’t we meant to be doing what’s best for the customer not our business model?
If you offer a good service and your clients value your advice then charge them a reasonable fee.
The proc fee is just an added benefit that is likely to disappear over time.
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