And with a glut of new lenders entering the market this year that can surely only get easier. After all, more lenders mean more competition which should mean cheaper pricing, which should in turn lead to happier clients. For the future, Mortgage Strategy sees the likelihood of less mainstream remortgage business and more of the specialism in the mortgage market as the way forward.More importantly, this enhanced choice is not available to your average punter looking to do a deal on the high street. Brokers are of paramount importance in this new era of lending. And indeed, should hopefully become more so. Mortgage brokers clearly are the dominant force in the supply chain. It is difficult to get an accurate percentage figure of all mortgage business placed, but as we exclusively reveal in our cover feature starting on page 42 this week, brokers now submit a staggering 64% of all mortgage business written. Our research, compiled by Network Data, shows just how important the intermediary has become in today’s lending market. Some lenders naturally rely 100% on introduced business. But even the mighty HBOS, a one-time giant on the high street, now originates over 80% of its mortgage business through the intermediary market. Interesting times indeed. It is Mortgage Strategy’s prediction that the overall figure of introduced business will grow as new lenders do not have branch distribution and will rely on brokers and distributors like Pink Home Loans, Premier Mortgage Service and Personal Touch Insurance and the like to promote products. And as clients’ circumstances become more complex, giving advice will be the main driver, not just for mortgages, but all financial products. The intermediary market is in rude health. Long may it continue.
- Top trends
Direct Line has launched a two-year fixed rate mortgage with a rate of 4.79% which has the added optional incentive of discounted home insurance and free home emergency cover for two years. Direct Line is also continuing to offer its three-year fixed at 4.84% and its five-year fixed at 4.89%.At the same time, the direct […]
An all female team from The Mortgage Partnership, the north west based mortgage packager, took part in the Tesco Race for Life at Birkenhead Park last Sunday.The TMP team took part in the 5K run last Sunday in aid of Cancer Research. In total 5,000 women ran or walked the Wirral event and together the […]
Commitments Protection has increased the size of its sales team with the addition of five regional sales managers and business development managers. The Mortgage Payment Protection and home insurance provider has appointed Paul Stacey to represent the company as BDM in the South-East of England and south London.Frank Edmunds is to represent the company in […]
The Financial Services Authority has confirmed it will continue to judge firms’ standards of product sales and financial advice by the standards and rules at the time of sale and not retrospectively. This policy will not be changed by the regulator’s move towards more principles-based regulation. The framework the FSA operates under dictates that it […]
In 2016, Cormac Weldon expects the economy in the US to favour selected smaller companies in housing, airlines and technology.
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