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Downturn has made brokers more professional

One of the silver linings of the financial crisis is that mortgage brokers have become more professional, says Richard Tugwell, head of national sales at Northern Rock.

Speaking at the Council of Mortgage Lenders conference this morning, he told delegates that intermediary standards have improved.

He says: “One of the silver linings of the financial crisis is that brokers have become more consumer centric and are treating borrowers as clients they can service again.”

He says customers have become less forthcoming and because of this brokers have improved their standards.

Ian Andrew, head of intermediary sales at Nationwide also told delegates: “There has been a cleansing process and the intermediary market has contracted, but the quality of brokers has increased.”

David Finlay, intermediary sales director at Barclays, says he believes the growth in the market will be led by brokers,

Tugwell also believes that growth in the mortgage market will be led by brokers.

But he says: “The only thing that could stop brokers leading the growth would be if new entrants enter the market who only sell direct deals, but I don’t anticipate that happening anytime soon.”

Also speaking on the panel was Granville Turner, chief executive officer of Countrywide, he says a problem the market is facing is the inability of lenders to innovate.

He called for lenders to look at ways to make mortgages more affordable for first-time buyers.

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  • Lee Parker 18th November 2010 at 4:50 pm

    Could it be that the reason there is a perceived improvement in standards is because the brokers that remain in a decimated industry are those that have always strived to attain high standards and have embraced TCF? Perhaps we that are left have good reason to feel a little righteous and that we will lead the recovery with good, honest service and advice. Well done to us all I say.

  • Ian 18th November 2010 at 3:29 pm

    It has also put a lot of brokers out of business. In Australia, mortgage brokers are paid trail commissions by the lenders. In this country they try to steal our business by offering deals direct to clients that we originally placed with them. What a bunch of crooks they are!!!

  • Alan J Nadin 18th November 2010 at 3:19 pm

    What crazy talk from respected people, that bokers will lead the recovery…….It has been the starvation of reasonable pricing, high LTV’s/innovation and ever changing criteria on repayment methods that are stifling the remortgage recovery, let alone offering any stimulus to the purchase market.

    Granville Turner offers some sense here in that lenders are the primary driver to recovery in terms of Residential mortgages and the Commercial Lending sector….how else, or from who else is the money coming from?? The government have done zero in making lenders support SME lending and the scheme that have been introduced have not been adhered to by the lenders as they just refusewd to lend. In the residential sector, lenders need to squeeze SVR’s upwards to encourage more take up of remortgage products and bring out longer term, better priced rates to encourage FTB take up and work with Private funders to cater for FTB’s at HIGH LTV’s rather than waiting forever for them to save up enough money to get on the ladder.
    Homebuy Direct was a good way to do this, but there are Private alternatives, it is a shame that lenders do not embrace them more as it is innovation that can help lead the way!!

  • Alan J Nadin 18th November 2010 at 3:19 pm

    What crazy talk from respected people, that bokers will lead the recovery…….It has been the starvation of reasonable pricing, high LTV’s/innovation and ever changing criteria on repayment methods that are stifling the remortgage recovery, let alone offering any stimulus to the purchase market.

    Granville Turner offers some sense here in that lenders are the primary driver to recovery in terms of Residential mortgages and the Commercial Lending sector….how else, or from who else is the money coming from?? The government have done zero in making lenders support SME lending and the scheme that have been introduced have not been adhered to by the lenders as they just refusewd to lend. In the residential sector, lenders need to squeeze SVR’s upwards to encourage more take up of remortgage products and bring out longer term, better priced rates to encourage FTB take up and work with Private funders to cater for FTB’s at HIGH LTV’s rather than waiting forever for them to save up enough money to get on the ladder.
    Homebuy Direct was a good way to do this, but there are Private alternatives, it is a shame that lenders do not embrace them more as it is innovation that can help lead the way!!