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Lenders pay a high price for ignoring the broker channel

It was good to see the story last week that brokers now account for almost two-thirds of all mortgages (Mortgage Strategy Online).

I hope lenders see these figures and realise the implication of shutting off a distribution channel as powerful and of such high quality as intermediaries.

I hope Mortgage Strategy publishes research based on the disastrous consequences in business activity for lenders that dual price and stop distributing via intermediaries. It would make interesting reading.

We are seeing many lenders being forced to cut their rates just to appear on best buy comparison tables because that’s the only way they can win business.

Then applicants realise the process is not as straightforward as it seems and find they are unable to meet criteria. Only good brokers can help clients select the right products.

With all the negative press about shoddy financial advice from banks and building societies combined with high pressure sales tactics to meet targets making a comeback, it’s no wonder clients choose independent advice. Long live brokers.


Assurant Intermediary urges clarity from CC

General insurance provider, Assurant Intermediary, has urged the Competition Commission to provide greater clarity in its final recommendation in July regarding the proposed point-of-sale prohibition for payment protection insurance.

Total mortgage complaints to FOS fall as SVR-related grievances rise

Complaints to the Financial Om-budsman Service about mortgages dropped 2% in the 12 months to March 2010, down from 7,607 in the previous year to 7,469. FOS’ annual report last week revealed that it upheld 48% of com-plaints relating to brokers selling banking and mortgage products. Disputes relating to lenders’ SVRs were a significant feature […]


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