First and second charge mortgages can help brokers beat comparison sites

by: Steve Walker, managing director of Promise Specialist Lending
  • 11/05/2017
  • 0
First and second charge mortgages can help brokers beat comparison sites
After adapting to multiple new regulation regimes and dealing with politicians seemingly addicted to chaos and confusion we’re all feeling a bit tired. But, there’s a bigger challenge to tackle.

A challenge that, if won, would have wide ranging benefits for all of us, and consumers. It’s the battle between man and machine or, in other words, taking on the comparison sites.

This is not a new fight. Comparison sites have now been around for some time and, while we are all well aware of the benefits brokers have over them, we know that for some products consumers are just going to find the ease and speed of an aggregator more attractive.

Core business threat

However, what if you’re not just at risk of losing ancillary business to such sites but also your core business?

Now most people wouldn’t look on a price comparison website for a mortgage but – and this is the key point – they will do so for a loan, especially if their mortgage broker is not willing or able to help them.

If a consumer goes on a comparison site to compare secured (or unsecured) loans then they are going to be presented with a range of options. Just what they asked for, you may think.

But what if a remortgage could have been better? What if a blended solution was the most suitable route?

What if a loan was only the second or third best option for that client?

The price comparison site is certainly not going to tell them that and the loans company that receives the lead is going to go ahead and give that customer what they asked for.

 

Losing out

Brokers could be losing out on big business because they are not seen as having a comprehensive offering – even if what the client actually needs is that broker’s core product – a remortgage.

As an industry we need to rise up to the challenge of comparison sites and work together – brokers, lenders, master brokers and packagers – to highlight the benefits of the intermediary sector.

In doing so we all benefit, rather than the comparison site bagging a commission for a loan that may not have even been the best option for the client.

And the consumer, of course, gets the peace of mind of knowing they’ve received a bespoke, tailored solution for their needs.

There are 0 Comment(s)

You may also be interested in

Bridging

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Commercial

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
Two builders assemble the roof of a new house
NatWest to fund 50-house development

NatWest has agreed a £4.6m finance deal that will see the creation of 50 new homes in Sutton Coldfield.

Close