View more on these topics

Post regulation, business costs are up says research

Mortgage intermediaries in the UK are facing increased costs as a result of FSA regulation, with the majority looking to adopt new technology and business process solutions as a result, research from Marlborough Stirling and Trigold reveals.

An alarming 84% of mortgage intermediaries say business costs have increased post regulation and around three-quarters claim they are increasing their focus on technology as a result.

A further 66% say they are also looking at new ways to streamline business processes.

However, depolarisation has also brought new opportunities as well as challenges, with 53% of intermediaries saying they intend to take advantage of the depolarisation rules and start offering mortgage related insurance products from a broader range of suppliers.

In addition, 27% of brokers not currently operating in equity release product areas say they plan to enter this market in the next two years.

Commercial property is also being focused on by intermediaries as an area for strong growth, with a further 25% of intermediaries not currently operating in this sector intending to do so in the next two years.

Phil Heaton-Jones, head of marketing for Marlborough Stirling, says: “This research highlights the increased costs that mortgage regulation has brought intermediary businesses but also shows that mortgage brokers are looking for new ways to utilise technology and refine processes to cut other costs from their business.

“While it is perhaps unsurprising that costs have increased post regulation, it is encouraging to see that the UK intermediary market is proactively looking for new solutions to maintain its competitive edge.”

Bill Safran, CEO at Trigold, adds: “This survey shows that intermediaries are embracing technology to improve their businesses. The intermediary now recognises the positive effect that technology can have on their bottom line and are planning to take full advantage of that.”

Recommended

Barnetts responds to government White Paper

Richard Barnett, senior partner of Barnetts Solicitors, has welcomed the legal reforms set out by the Lord Chancellor in the White Paper published on the October 17 2005. Barnet, who is an advocate of change within the profession, says the reforms will pave the way for the industry to become more efficient and create a […]

Barclays and Woolwich launch mortgage range

Barclays and Woolwich have launched a range of mortgage deals, which include a highly competitive two-year fixed rate with no application fee at 4.89%, and a five-year fixed rate at 4.99%.Key features of the re-mortgage deals are rate fixed at 4.89% until January 31 2008, and 4.99% until January 31 2011. There are no arrangement […]

Britannia launches 10-year fixed rate mortgage

Britannia has today launched a ten-year fixed rate mortgage at 4.89% with up to 95% LTV. The product will involve a 399 arrangement fee, and an administration fee of 100 will also apply.Paying off the mortgage within the ten-year fixed rate period will incur early repayment charges. The mortgage will be available to first time […]

Flood defences

The Environment Agency says millions of UK homes are at risk of flooding. The Royal Institution of Chartered Surveyors supports the idea of encouraging home owners to minimise damage in the event of a flood. Tight resources mean proper maintenance of flood defences by the Agency are under threat. RICS believes there should be an […]

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]

Newsletter

News and expert analysis straight to your inbox

Sign up