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EXPO 2010: 53% of consumers intend to go direct for their mortgage

Over half of 2,000 consumers poled by intermediary specialist lender Platform answered that they would go direct for their mortgage.

Lee Gladwell, director of sales and proposition at Platform, revealed the findings today at the Mortgage Business Expo in London.

Just 14% of respondents said that they would use a broker with a further 33% undecided.

Gladwell told the audience that the most common reason for consumers’ reticence to use a broker, at 62%, was having to pay a fee.

The reasons consumers gave for going direct was that they saw it as easier, convenient and quicker.

Platform helped kick off Mortgage Strategy’s Define Advice campaign earlier in the year to try and increase awareness among consumers and borrowers about the benefits of using a broker.

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  • PC 13th November 2010 at 9:03 pm

    All of you negative brokers making these outrageous comments my advice is “hurry up and leave the industry” this will leave me even more clients for those of us that actually believe in what we do……………. I agree we need to diversify (which i have) and get involved in other areas. if you have a client bank use it. the futures BRIGHT the futures a good mortgage broker.

  • nick johnsion 12th November 2010 at 5:55 pm

    My clients pay a fee for good advice

    I offer both direct and indirect deals

    Like many .i have many years doing this job and i value what i do as a professional service
    I dont agree with the survey to be the whole of the uk just 2000 people polled there is a market for good quality advice
    so lets not be negative and believe in what we do as the professionals that we are
    Nickj

  • Ivana Sukyabolokov 12th November 2010 at 4:51 pm

    ..that leaves 47% of consumers who prefer to get face to face advice right?

    out of 10 people:

    3 – would ALWAYS use a broker
    3 – would NEVER use a broker
    4 – can only go direct as they only offer direct!

    Come on guys & gals – the writing is on the wall for brokers, get out now whilst your still alive!

  • PD 11th November 2010 at 6:11 pm

    Yes its a REALLY stupidly phrased question, loaded by the owner of Platform namely CO-OP and Britannia, who are …. er …. direct. If you went in Tesco and the survey asked would you prefer to buy your eggs direct from the farm or through a supermarket what would they say?. Oh, and what was the size of the survey? the 3 people that turned up to their stand today? Its all nonsense and continues the negativity of MS. I think perhaps we should all unsubscribe from this, instead of giving it a platform (no pun intended)

  • Maurice Edgington 11th November 2010 at 3:49 pm

    From many years experience of markeing surveys I found that if you ask consumers whether they prefer to buy direct or via someone else they will say “direct”. This is because there is a belief that they may become the target of unwanted sales calls and may get a cheaper deal. So I do not believe that this information is of any use unless we know the exact questions put to people. Bear in mind the venue’s only purpose is to sell the idea of whoever is exhibiting. People just want free information not surveys…in my view.

  • AAA 11th November 2010 at 3:48 pm

    53% of consumers will go direct.
    50% of 53% will be declined (at least) by going direct.
    Therefore 536 consumers will be left twiddling the thumbs; and then realising they should of started with a broker.

    Oh and those hour long phone applications are ‘convenient’ for them to turn around and say ‘Mr client, come back in 6 months’.

    We’ll have to wait and see..

  • Graham Salloway 11th November 2010 at 3:40 pm

    And of course when they go direct the nice banks won’t charge them any fees will they?

  • FWMS 11th November 2010 at 3:38 pm

    What a wind-up merchant

    I suppose the figues put out by Lenders over the years indicating otherwise must be classified as Lies, Damn Lies and Statistics.

    Not all Brokers charge fees – Not all Lenders are guilty of stuffing their borrowers with uncompetitive deals and costly ad-ons – Not many Lender will go out to see potential clients in their own homes, at times convienient to the client and take the time to ensure that the most suitable is recommended – Not many Brokers do Non-Advised Sales.

    Not a surplus of clear, positive thinking by the Directum of Sales & Propositions at Platform.

    Not many people will put too much store on the good Master Gladwell’s survey or his words of wisdom

  • Mike Hughes 11th November 2010 at 3:37 pm

    What a wind-up merchant

    I suppose the figues put out by Lenders over the years indicating otherwise must be classified as Lies, Damn Lies and Statistics.

    Not all Brokers charge fees – Not all Lenders are guilty of stuffing their borrowers with uncompetitive deals and costly ad-ons – Not many Lender will go out to see potential clients in their own homes, at times convienient to the client and take the time to ensure that the most suitable is recommended – Not many Brokers do Non-Advised Sales.

    Not a surplus of clear, positive thinking by the Directum of Sales & Propositions at Platform.

    Not many people will put too much store on the good Master Gladwell’s survey or his words of wisdom

  • Swanny 11th November 2010 at 3:21 pm

    Are you reading this FSA

    Most clients do not like paying fees.

    So get your heads out of your butts and listen.

  • chris gardner 11th November 2010 at 3:08 pm

    “The reasons consumers gave for going direct was that they saw it as easier, convenient and quicker.”

    the broker market needs the statement to read

    “The reasons consumers gave for using a broker was that they saw it as easier, convenient and quicker.”

    if consumers feel that brokers make the process longer and less convenient then the writing is on the wall.

    As intermediaries we probably have 2 years to turn things around or it curtains.

    Well done to platform for delivering this news now – it might make us all think a bit more about where our industry needs to go.