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Brokers are key in the supply chain

These certainly are interesting times. It’s well known that the best way to win consumer confidence is to offer your clients more choice at better prices, striving to provide them with the products they really need.

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.


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FSA assures firms they will not be judged retrospectively

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