The broker and lender relationship is evolving. Lenders want volume quality business and are making a flight to what they consider properly packaged business and its value.
Lenders also have a higher expectation of how introduced business performs once it is on the books.
Expect a new push for tiered servicing over the coming months, but also a desire on the part of lenders to extend their share of the customer wallet.
Lenders want introducers to sell their other products such as current accounts, general insurance and conveyancing to maximise the value of every customer.
For brokers, there are important partnership issues to consider. The broking community is still submitting the lion’s share of mortgage business and has everything to fight for.
In the foreseeable future the tide will be in favour of the lenders. But it is not all bad news.
Appointed representatives will still need good commissions, a broad range of other fee income products to cross-sell, and market leading mortgage products.
These will also be needed by directly authorised brokers, but they face the extra challenge of increased vigilance and policing from the regulator.