From Ernie ReevesSimon Mouncher’s letter regarding sourcing systems (Mortgage Strategy October 17) is the tip of the iceberg and represents a much deeper underlying problem faced by packagers and product providers who want to see their products on one or more of the main sourcing systems. Packagers, branded mortgage arrangers and lenders have little or no choice but to have their products represented on the main sourcing systems as the majority of brokers use one or other of them. What we have is a monopoly situation whereby the sourcing systems have product providers over a barrel if they want brokers to see their offering. Therefore there is no incentive to either reduce the cost or improve the service. This is what Mouncher is complaining about. Our specialist sub-prime sourcing system Place Me carries products from 50 lenders and includes branded lending arrangers. Our policy of not charging for product changes is unlikely to make the big sourcing systems lose sleep. Place Me has only a fraction of the broker coverage of the big boys. And as long as there is so little competition, the idea of the big sourcing systems actually altering their pricing or service to product providers is a non- starter. This will only happen when product providers like Mouncher’s company have more control over the delivery of product information to brokers or there is more competition. What incentive have the big sourcing systems to change the status quo? None.
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Advantage Home Loans has reported a record number of mortgage enquiries following the launch of e:valuate this week. Kate Huet, marketing director at Advantage, says: “When we were setting up e:valuate, we knew that this would be revolutionary for the sector an industry first that provides brokers with much more than sub-prime product sourcing, as […]
It would be easy to mask the real reason for my calling time on early redemption penalties by saying it would make it easier for consumers to understand how mortgages work. But I won’t. The truth is that ERPs can and often do stop home owners moving or remortgaging.
From Richard Griffiths Jeff Sutherland-Kay is quite correct in saying my argument for higher proc fees is woefully thin (Mortgage Strategy Letters October 10) but you have to start somewhere. Woefully thin is better than nothing at all. With or without the co-operation of the lenders (probably the latter), I intend to put some meat […]
Quantum Mortgage Brokers is to resign its directly authorised status by applying to join the Home of Choice network. The decision to apply to become an appointed representative came after months of deliberation and at a time when the boutique brokerage is seeing a growth in business. Jonathan Burridge, managing director of Quantum, says: “We […]
Do macro headlines create white noise which impacts market prices? Portfolio Manager at Harris Associates, David Herro, discusses how market volatility can create opportunities to buy good business at a discount.
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