Mortgage Talk director Peter Birch is warning mortgage advisers to embrace new technology if they want to survive regulatory change.
Birch says: “The next two years or so will see wholesale changes being introduced in the mortgage advice arena, including new regulations, pressure on margins and, of course, the seller's pack proposed by the Government in the Queen's Speech. Coupled with the predicted slowdown in the housing market, advisers will find that their margins being squeezed unless they take early action.”
He adds: “Early adoption of new technology is probably the best way for mortgage brokers to ensure their continuing profitability. Those companies that implement the latest online mortgage application packages will be better placed to maximise business and to maintain their margins. Moreover, these packages are already well established and are proving invaluable for the swift submission and processing of applications.”
Birch says that many brokers are failing to prepare in anticipation of N4. “Much of the profession is continuing towards the deadline as though nothing will happen. Although we are still guessing what the exact contents of the proposed Homes Bill and the Office of Fair Trading enquiry into estate agency practices will be, we know that we should be preparing in advance. Those advisers that think they will be able to continue as before simply aren't being realistic.”