Research by The Exchange says 56% of currently non-regulated intermediaries will start selling other products following the introduction of mortgage regulation in October 2004.
The findings also reveal that three-quarters (75%) of the intermediaries surveyed believe the cost of mortgage regulation will be passed onto the consumer.
The research shows that two months short of regulation, intermediaries are concerned with existing e-commerce facilities and that intermediary portals are their preferred route for conducting mortgage business.
93% believe that e-commerce facilities need to be improved in preparation for regulation and 92% said that they would prefer to source mortgage quotes and accurate KFIs via an intermediary portal or mortgage sourcing software, as opposed to via a lender's website.
The Exchange's Exweb Broker portal is designed specifically for intermediaries selling non-regulated products. It gives them access to mortgage sourcing from Mortgage Brain but also provides customised versions of The Exchange's market leading services that enable them to research, quote and buy protection and general insurance policies associated with the mortgage sale. The service will comply with FSA rules from October 2004 (mortgages) and January 2005 (general insurance).
David Child, managing director at The Exchange, says:”There has been much debate recently about whether portals or lender websites are the best method for intermediaries to use to access KFIs. But, as a guide, this survey shows that intermediaries would prefer to use a portal or sourcing system so lenders, sourcing engine suppliers and technology companies must work together to ensure this is possible.”
Mark Lofthouse, chief executive at Mortgage Brain, says: “Mortgage sourcing systems are universally used by intermediaries and are recognised as the most efficient way to access compliant quotes and KFIs because they provide whole of market coverage in one place. This research confirms their importance and highlights the need for companies to work together to ensure they meet the needs of mortgage advisers.”