It may not seem like it at the moment, but somewhere in among the current problems in the market there lays a silver lining and it is directed at packagers.
Some may not have realised it yet, but packagers are going to be needed more than ever in the current market, not only will consumers be using brokers more, but brokers will be using packagers more.
A year ago, a broker may have given one of the high street lenders when faced with a light adverse client, but now they will be lucky if a one of the mainstream lenders even look at light adverse, so the broker will have to turn to a packager who has the relationship with the specialist lenders.
Brokers are being forced to work harder than ever, but let’s face it, to some brokers they won’t be able to break old habits and will find themselves being unable to get deals accepted because of shoddy applications.
Only this week there was a warning from Richard Brown at consumer site Moneynet.co.uk telling brokers that if they don’t fill out their applications properly than lenders will not give them the time of day.
Some lenders may have dropped some packagers from their panel because they don’t want the distribution, but in turn they won’t want to deal with as many brokers, so brokers need to find a way in, which will be through packagers.
For those packagers that survive, lenders are going to need them even more at the other end, because dealing with packagers is more efficient, lets them control volumes, and saves them money. It may not seem like it at the moment, but some packagers may find that they benefit from current market conditions.
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