It wasn’t a good week for brokers. First came the comment from Moneysupermarket.com that 90% of deals are available direct and then the news that another broker brand, Alliance & Leicester, is getting the chop. To rub salt into the wound HSBC also came out with a 2.19% tracker deal and released research showing direct-only deals dominate the best buy tables.
With bad news on a regular basis it can be easy for brokers to forget the bigger picture.
HSBC might be hammering home the benefits of going direct but its results show it only increased its mortgage market share by 3% in the first half of 2010 despite advertising in what seemed like every newspaper and on every billboard for the past few months. And a price comparison site is bound to have its own motives for painting the direct market in a positive light.
So perhaps the only views brokers should be concerned about are the ones of those who will shape their future. In this week’s issue Peter Curran, director of intermediary mortgages at Lloyds Banking Group, explains why brokers have a future and why they’ll be the ones to benefit when rates start to rise.
Lloyds group’s half-year results reveal that it has maintained a 23% share of the market so it is well placed to comment. This industry has always been a game of swings and roundabouts and although times are tough for brokers the pendulum will soon swing back.
The market has seen a major shift since 2007 which is why Mortgage Strategy, in association with Woolwich, is launching its first broker census. Look out for daily email news alerts from Mortgage Strategy to take part and be entered into a draw to win tickets to see Newcastle play Aston Villa on August 22.