View more on these topics

MAB predicts broker casualties in 2006

There will be more business casualties among broker firms in the next two years the Mortgage Advice Bureau warns.

The independent mortgage brokers says 2005 may have been a tough year, but 2006 will not be any easier and by 2007 the market will be firmly divided into winners and losers. How the market splits will depend on whether brokers realise they need to change in the current tougher climate.

Peter Brodnicki, chief executive of MAB, says the tougher housing market and competitive mainstream mortgage market, together with the time demands and cost of regulation, will continue to make life harder than ever in 2006. By 2007 the additional impact of Home Information Packs will severely test the financial viability of many mortgage advisers if housing transactions fall as predicted.

MAB predicts that only the brokers that offer additional income streams such as personal loans or conveyancing will survive. It also believes that because of the changing dynamics of the income model for brokers, those who charge fees will be the most successful. Analysis of the performance of MAB’s 250 franchise branches shows that the most successful and profitable advisers are those who charge fees
Brodnicki adds: “The industry must evolve to survive. I think many people have underestimated how much the world is going to change – they thought M-Day was the big challenge, but our view is that the next two years are going to be far more demanding. Only those brokers with the foresight to adopt new ways of working will thrive. For individual advisers, this means being careful about which networks or businesses that they choose to work for.”


Largest study on lender technology is complete

The 2005 Mortgage Lender Intermediary Technology Benchmark Study, carried out by Frank Eve Consulting, is now complete. The study is the largest and most detailed of its type in the industry. It offers lenders information on how to improve efficiency, increase site usage and boost their understanding of competitive positioning and market share. The study […]

ARLA launches landlord survey

The Association of Residential Letting Agents is urging landlords to complete its online survey.ARLA research aims to counter misconceptions about the buy-to-let market so both the private rented sector and private investors can make informed judgements. It is therefore urging landlord to completes its survey, the results of which can be used to inform and […]

Paymentcare backs FSA action of selling practices for PPI

Paymentcare, the standalone payment protection insurance broker, has given its full support to the Financial Services Authoritys call for firms to take urgent action to ensure selling practises for PPI are in line with regulatory requirements.The FSA initiative comes hard on the heels of a mystery shopping exercise that uncovered poor selling practices and a […]

Beating the blame and claim bandits

Lovers of Radio 4’s The Archers will not be surprised to hear its true to life story lines included the rising cost of public liability insurance last month.


News and expert analysis straight to your inbox

Sign up