Intermediaries will survive and prosper

BOB YOUNG, MANAGING DIRECTOR, CAPITAL HOME LOANS
BOB YOUNG, MANAGING DIRECTOR, CAPITAL HOME LOANS

Recent figures from the Council of Mortgage Lenders revealed that brokers were responsible for two-thirds of all first-time buyer mortgages, 53%of all home mover loans and 59% of all remortgages last year.

This clearly shows mortgage advice is still keenly sought and that consumers value it when seeking finance.

There is obviously a place for advisers now and in the future – news of the death of mortgage advice has been exaggerated.

We are dealing with a mortgage market that has shrunk considerably and with this the number of active mortgage advisers has also fallen.

But in this smaller market we have witnessed the top echelon of advisers not just surviving but finding ways to flourish.

The CML figures show that whatever the size of the market advisers are still able to promote their services effectively and pull in the business.

Of course the intermediary continues to have many challenges to overcome, dual pricing has not gone away and many lenders have particularly competitive direct-only products available.

But the benefits of advice are all too apparent, and when one considers that the market is slowly growing its product range and choice, the need for professional advice will surely grow with it.

Intermediaries should feel proud of their performance and I believe these numbers will improve in 2011.