Richard Angliss, managing director of Home Buyer Systems, believes this increase proves that brokers are successfully providing customers with a valuable service for which they are willing to pay a fee.
He says “With only 17% per cent of total mortgage products with an LTV of 75% and above currently being distributed through intermediaries, we have seen a huge escalation in brokers switching to our whole-of-market sourcing system in order to advise clients on direct-to-lender products and – if they believe it to be appropriate – charging a fee for this service.
“Initial response to the idea of mortgage brokers charging customers an admin fee for whole-of-market advice was sceptical about the willingness of customers to pay this sort of fee. However, the hard evidence is that we have logged the volume of fees as nearly doubling since last year, so it’s clear that the general public values the professional advice offered by true whole-of-market mortgage advisers.
“With no sign of a substantial upturn in the mortgage market happening any time soon, adopting a whole-of-market sourcing capability seems to be a trend within our sector that is starting to experience exponential growth.”