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Broker deals outnumber direct by more than double

  • 05/08/2010
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Broker mortgage products currently outstrip direct-only deals by 3807 to 1401 respectively, according to TrigoldCrystal.

Its Product Index revealed that the total number of available deals on the market in July was 5208, just 91 less than in June, when the total was 5299.

David Aylmer, business development and marketing director at TrigoldCrystal, said the figures showed the strength of the broker market and strongly contrasted with the, now retracted, figures suggesting 90% of the best deals are only available direct.

He noted that the debate around broker and direct-only deals has missed two key issues: that headline rates are often not available to the majority of consumers, and that many brokers offer advice on both direct-only and proc-fee paying intermediary mortgages.

Aylmer said: “The products that was referring to were simply those at the top of its best buy tables.

“These are obviously the ‘headline rate’ products and as our clients know these are not generally available to the majority of consumers but serve as a marketing technique by many banks to get potential clients through the doors of their high-street branches or to apply online.

“In the majority of cases, we know that the headline rated product is not the one that is finally made available to the client.”

He added that the role of the advisor had changed from being a “gate-keeper” of the best mortgage rates to that of offering expert advice consumers need to negotiate the complexities of the market.

“Ironically, the competitive split between direct-only and intermediary channels (especially in the area just below the headline rates where most business actually takes place) has, in my view, made the role of the intermediary even more important and it is this message that the public need to get in order to receive the best financial advice,” Aylmer concluded.

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