Despite the increase in dual pricing, mortgage intermediaries continue to dominate mortgage lending, according to figures.
Statistics from the Council of Mortgage Lenders (CML), using data from the Financial Services Authority, gave brokers 64 per cent of the total mortgage distribution market in the first quarter of 2009. The figure has held steady through the second half of 2008.
Since the start of the credit crunch, some lenders have focused their efforts on branch-based mortgage distribution, said the Intermediary Mortgage Lending Association (IMLA) but the data highlights the reality that the industry as a whole continues to use intermediaries as the main channel.
The evidence suggests homebuyers and remortgagers continue to value the expertise and service levels offered by the mortgage broker community, said IMLA.
The figures showed that 70 per cent of first-time buyer loans, by volume, came through intermediaries in the first quarter of 2009, up from 68 per cent in the previous quarter, while home mover loans increased from 56 per cent to 58 per cent over the same period.
Peter Williams, IMLA’s executive director, said: “People value the service that the mortgage broker community provides.”
“The mortgage market is less than half the size it was at its peak – which means brokers have to work hard for the reduced business there is in the market. Brokers are focused on helping borrowers and ensuring lenders write high quality loans. Consumers value this channel and clearly so do lenders. Indeed despite all the turbulence in the market a number of lenders have strengthened their intermediary operation. There will be many challenges ahead but in our view the intermediary market will remain at the heart of mortgage distribution"
Comments
Today in Sky News..Tories will kill off FSA when they get in. Start worrying about your jobs FSA people and then you may comprehend the effects of Dual Pricing in the mortgage jobs market!!!
I have always thought the FSA and the mortgage broking industry should adopt a sales model similar the IFA market where the insurance companies actively inform customers to seek advice and contact an IFA. This would help both the broking industry and promote the TCF and FSA goals.
Regardless of CML figures and quotes from IMLA suggesting all is well, I would like to disagree. I have worked as an Independent Mortgage Adviser for the past 15 years and I am today earning the less than at any other time. Dual pricing is a major factor and I am losing customers at an alarming rate to these direct deals. Customers do value independent advice but not when it hits their own pockets and they are being driven into the hands of the lenders. We all know that they are not receiving advice and that the level of service is likely to be poor but the most important factor for the customer is the monthly cost of the mortgage. If dual pricing is not stamped out soon there will not be a choice as all the Independant Mortgage Advisers will have given up. Lenders have the audacity to suggest that they are supporting the intermediary market when in fact they are stabbing us in the back. The question is who will be selling their mortgages for them when the market picks up and they realise that they have put us all out of in business. Please give us a level playing field.
Lesley Titcomb, director of small firms and contact centre at the FSA, said “consumers are looking for access to mortgage products rather than seeming to need advice on them.”
This opinion based on the FSA's own rersearch.
I wonder how the questions were phrased to arrive at this conclusion?
The latest figures from the CML show that two thirds of consumers want advice and want to use a broker.
Is not time the FSA listened to what customers actually want? Customers are voting with their feet and using brokers.
The FSA need to realise that the consumer has spoken and they DO want advice and they DO want to use a broker.
The FSA do not appear to view our industry as offering professionalism. I get the impression that they hate the fact customers have to be 'sold to' (or is that 'advised?'.
They have a notion that customers 'want to' purchase protection, when we know the truth of the matter is that these products have to be advised upon and sold!
When most advisers were predicting rates would fall last year, how many customers still wanted a fixed rate? As advisors, we inform and educate our customers and help them to see the bigger picture. Good quality advisors can help the FSA to deliver the outcome of improving financial understanding, why ignore us as a resource?
I have booked an appointment to see my MP as I believe the decisions that will be made by the FSA with regards to the future of regulation and on procuration fees endangers our industry.
It is time that government, from whom the FSA derive their authority, take charge and put an end to this mad situation whereby research by a regulator is more important than the actual behaviour of customers.
When the FSA publish their consulation paper on mortgage regulation in September, firms must respond and make their views known.
We should also be engaging with our policitans to ensure the FSA is reformed so we have more common sense outcomes in the future.
A storm is brewing, and it's very important we make our views known.
Advice is so important but advisers will probably have to wait for banks to cock up their own operations before they stop dual pricing. A Nat West Underwriter did not take into account London Weighting when assessing a case. Then told the client she woudn't change her mind if appealed! These people are morons. They should stick to whatv they are good at...ripping customers off and let us give quality advice!