Mortgage News
#TME2012: MMR will force lenders back to broker market – Aldermore
The implementation of the Mortgage Market Review will see lenders forced to focus on the intermediated market, according to Aldermore managing director Charles Haresnape.
Haresnape, speaking at The Mortgage Event at the Etihad Stadium in Manchester, commented that the costs associated with making a sales process fully advised would prove too high for some lenders.
“Branch based advice is heading on a downward trajectory,” Haresnape said.
“The cost for lenders with big branch networks to implement the MMR rules about advised staff is massive. These lenders will all turn back to the intermediary sector.”
The intermediary-only lender added that it would look to stay in the interest-only sector, despite the withdrawal of several major brands, but warned that a ‘herd’ of interest-only customers could force some lenders to harden criteria.
Haresnape went on to say that he expected to see more major lenders follow the lead of Abbey for Intermediaries and introduce quality-based proc fees.
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“I think you will see more lenders link quality with procuration fees, whatever the quality is defined as.”
A few weeks ago, Lloyds confirmed it was continuing to assess its own strategic position on fee payment based on case quality.