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Brokers must rise to challenge of booming product transfer market – Lloyds

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  • 04/05/2017
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Brokers must rise to challenge of booming product transfer market – Lloyds
“You can be scared or you can see the opportunity in the booming product transfer market,” said Mike Jones, managing director of intermediaries and specialist brands, at Lloyds Banking Group.

Speaking at Mortgage Advice Bureau’s 2020 conference in Leicester, Jones (pictured) said when the raft of lenders followed Santander’s move to offer retention fees in January or confirmed plans to do so, this created an opportunity for brokers to compete. He expects a dramatic swell in activity in the product transfer market, which he advised brokers to be clued into.

Despite the lack of data, Jones estimated the product transfer market was still just ‘lightly intermediated’ with 85% of the business going direct and 15% through brokers.

“Brokers retain three-quarters of the UK advice market, so the battle for market share feels largely over, with intermediaries winning the advice war,” said Jones.

“So it’s a shame that three-quarters of that business disappears after the house purchase stage.

“That’s a transaction, not a relationship if you never talk again. The broker relationship should exist throughout people’s lives and be turned up to high or low at times, but never down to no contact at all,”he said.

Jones told the audience that technology would create winners and losers but there was a huge opportunity for brokers.

“Direct has won on execution-only for now, but the question is, how do you grab that business back?”

He concluded: “Technology won’t define the winners, but it will help the winners succeed.”

 

 

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