Brokers back packagers

Brokers and IFAs think packagers still play an im- portant role in the mort- gage industry, according to research from Platform.

A poll of over 200 mortgage brokers and IFAs found that 62% would submit the same amount of business or more to packagers over the next 12 months.

The research shows that packagers remain an appealing option due to their knowledge of lenders and their access to exclusive products.

Respondents use packagers most for sub-prime business, with the second most popular use being for mainstream business.

Paul Hunt, head of marketing at Platform, says: “Speculation from pundits continues to cast doubt on the longevity of the packaging community but our research suggests that the role of packagers is far from obsolete.”

“As a company that values packager distribution we believe they add considerable value not only by generating substantial volumes of business for lenders but also by providing fast turnaround times for brokers, allowing them to deliver better service to their clients.”

Paul Suchet, director of packager Alexander Finance Services, says: “This is great news for the industry. I hope brokers and IFAs will submit even more work via packagers.”

But Alan Cleary, director of MBAC Consulting, says: “Platform is a packager-based lender so these results are not a surprise. Any survey it does will lean towards packagers.

“There are some good packagers in the market but there are many that don’t add much. We’ll work with packagers that are good for consumers. They must provide value for money. The vast majority don’t and we need to push them out of the market.”

The research forms part of Platform’s Clickthinking initiative.