Low commission and high LTVs top brokers’ woes

A total of 57% of mortgage brokers feel commission has fallen in the last 12 months, research from short-term lender Borro reveals.

A survey of 454 brokers at this month’s Mortgage Business Expo also found that nearly 40% of mortgage brokers thought high LTVs were the biggest hurdle in 2010.

Six in 10 respondents thought the market would not improve next year and 13% felt high house prices had been the biggest challenge of the past year.

Paul Brett, business development director at Borro, says commission has fallen due to fewer products and lenders in the market.

He says: “There is no need for len-ders to encourage business through commission at the moment, plus more brokers are charging their clients fees, which has had an impact on commission.”