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Savvy brokers will leap into IFA-land

There has been much talk of mortgage advisers diversifying to stay in business and there is evidence of forward-thinking brokers doing just that, resulting in Premier Mortgage Service changing its name to PMS last month to accommodate protection and savings products.

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.”


The month at a glance

Lord Oakeshott unveiled the Lib Dems’ vision of mortgage stabilityFebruary started with many mortgage brokers finally understanding that it was time to diversify into different product areas.

Lenders must fight their corner

Phillip Tebbatt says politically motivated measures to address problems in the lending market could do more harm than good and the industry fightback should start here

PMS launches large loan service

PMS has launched a new commercial partnership with specialist broker to deliver a large loan referral service for PMS members.

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Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.


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