This shift reminds me of the start of the credit crunch when mortgage brokers who only dealt with prime mortgages thought their livelihoods would be fine because the problems, at that time, only affected those in the adverse sector.
They then saw their market share disappearing as adverse-only brokers moved into the prime sector.
The same looks likely to happen in the IFA market as mortgage advisers become multi-skilled and expand into territory that was formerly only inhabited by IFAs.
In some ways, former mortgage-only advisers have an advantage as the cold calling ban forced them to look to less traditional sources for new clients.
For example, lead generation is much less known in the IFA market, but with more consumers asking for advice on life assurance, critical illness, ASU and income protection, savvy mortgage advisers could quickly be making leaps and bounds into IFA territory.
Shrewd advisers know this doesn’t happen purely by single product sales, but that leads are an introduction to clients with whom business may be done in many areas, thus removing the need for them to go to other advisers for their non-mortgage needs.”