View more on these topics

Speed not expertise is what consumers rate

LEE GLADWELL, NEED TO BOOST, UNDERSTANDING
LEE GLADWELL, NEED TO BOOST, UNDERSTANDING

Research from Platform has exposed a glaring discrepancy between the way brokers view themselves and the reasons consumers give for using them.

Platform, the broker arm of The Co-operative Financial Services, has analysed feedback from brokers and consumers to gain an insight into what drives the public to seek advice from brokers.

The survey found that ’ease and convenience’ was the main factor pushing consumers to choose a broker to arrange their mortgage. This was followed by saving time and effort with work carried out by brokers, help with finding an affordable deal, and access to the whole market.

Surprisingly, the lowest ranking factor for consumers – the experience and expertise brokers offer in advising on suitable deals – was considered the most important driver for advice among brokers.

The brokers polled believed that whole-of-market access was also key for consumers, with ease and convenience, and time-saving further down clients’ priority list.

The speed at which brokers can process a deal was ranked fifth as an advice driver.

Interestingly, finding affordable deals did not feature for brokers as one of the reasons why consumers get advice.

Lee Gladwell, business development director at Platform, says: “These findings show that consu-mers appreciate many of the good things on offer from brokers, but appear to have a lack of awareness about the level of advice they receive.

“While there can be no doubt that the industry provides quality advice, we believe it should work together to boost consumer understanding of what it means to deal with brokers.”

Platform continues to call for industry-wide action on promoting the benefits of brokers as part of its Define Advice campaign in conjunction with Mortgage Strategy.

Robert Sinclair, director of the Association of Mortgage Intermediaries, says: ” Consumers make the decision that they want to purchase a house and decide they need to do something about it and that’s why they go to brokers.

“Brokers seem to be approaching it from a slightly different angle and focus on why consumers choose them rather than somebody else. Meanwhile, customers are thinking that they need to get the mortgage done and a broker is someone who can help them.”

Recommended

Leader: Finance is key to the future

The buzzword at a debate on housing last week was – depressingly for the mortgage market – renting. The Land Data Great Housing Market Debate in Westminster had the bosses of Paragon Mortgages, Your Move and Galliford Try Homes, as well as the chief economist at Nationwide Building Society and BBC chief economics correspondent Hugh […]

L&G joins complex prime club with two-year fix

Legal & General Mortgage Club is the latest distributor to offer com-plex prime with the launch of a fixed rate mortgage with no credit score last week. The two-year fixed rate mortgage at 3.35% is being offered by Hanley Economic Building Society. It comes with a £100 booking fee and a £1,399 administration fee, and […]

MARK BLACKWELL, MANAGING DIRECTOR, XIT2

Get tough with data security measures

Have you ever been to India? No? Well fear not, because your NHS records may have taken the trip for you. Millions of patient records are being sent to India to be processed in an attempt to cut costs. Consultants read patient notes into voice recorders and these recordings are sent to India to be […]

Lending and house prices likely to remain low despite high LTV deals

An array of 90% LTV deals were launched last week, but lenders have warned that house prices and mortgage lending will remain subdued over the year. The Bank of England’s March Trends In Lending report published last week shows the amount of new mortgage lending available to households was broadly unchanged in 2010 Q1. Within […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.

Newsletter

News and expert analysis straight to your inbox

Sign up