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Nine-in-ten sales will be advised post-MMR – Vizolution

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  • 11/09/2013
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Nine-in-ten sales will be advised post-MMR – Vizolution
Advisers are likely to take a bigger share of the mortgage market post-Mortgage Market Review due to a sharp increase in advised sales, a Vizolution study has suggested.

The technology firm has estimated that only 20% of mortgages sales are currently advised – lower than the Financial Service Authority’s mid-2012 figure of 30%.

However, Vizolution argued the impact of the new rules on advised sales could lead to 90% of sales were likely to be advised, it suggested.

Its interviews with lenders has also led the firm to suggest the advised process under MMR could take six times as long. While a typical unadvised sale takes between 15 and 20 minutes, an advised sale could take between 90 minutes and two hours. 

Vizolution chief executive Bill Safran said the effect of the MMR could not be underestimated: “The effect on the sales process, the time it will take and the number of trained advisers that will be required will be dramatic.

“The FCA has made it clear that there will be no leeway and no extension of time for organisations that are not ready.”

More than half of intermediaries believe the MMR will boost their business, according to an August poll of brokers by BDRC Continental. 

BDRC Continental director Tony Wornell said the figure reflected the proportion of interactive sales which had to be advised under the MMR: “The interesting question might be whether many more borrowers will find their way via online mortgage arrangements.”

MMR would mean little change for intermediaries but a much larger change for lenders, he added. “I would imagine lenders are getting geared up for this change so they can defend their market share.”

 

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