’Nine out of 10 consumers would rather use brokers than go through the mortgage process on their own’ should be the follow-up to Moneysupermarket.com’s recent pronouncement.
The website will clearly do anything to draw attention to itself. Consumers don’t realise advertisers have to pay to be on it and that many products don’t appear. They should also know that independent brokers now have access to direct-only deals and will advise on both.
There’s no doubt that more lenders are now distributing direct-only and dual pricing, but primarily on first-time buyer rates.
Direct-only lenders will have to compete on price and rates to get into best buy tables. This will erode profit margins but be good for consumers.
With all the negative press over lenders’ advice is it any wonder that consumers prefer to use independent advisers?
We are seeing increasing levels of enquiries and more exclusive products from lenders than at any time in the past two years because not everyone qualifies for an HSBC loan at 3.5 x income.
Many lenders have reverted to using brokers recently and those that choose to ignore such a powerful distribution channel do so at their peril – they risk losing even more market share. Long live brokers.
Avenue & Co Private Finance