Speaking at the Tenet annual conference at London’s Lancaster Hotel on Friday, Harle said lenders would look to use the intermediary channel more after the implementation of the Mortgage Market Review (MMR).
“Dual pricing, which has been here forever and will be here forever, will move in favour of the intermediary as lenders look to drive volume through that channel while they bed in the requirements under MMR.”
Harle said the business expected the mortgage market to reach £200bn by 2015 with the market share of intermediaries moving up to 60%.
However, she added that advisers themselves must also be prepared for the affordability element fo the new regulations.
“The fundamental change with the Mortgage Market Review for advisers is the cultural shift and I don’t think you can underestimate that,” she said.
“The FCA is very clear we’re moving away from deciding on the ‘most suitable product’ to one that is in the best interests of the customer. That means you can’t stand and say because a loan met the lenders’ criteria it was suitable, that does not work.
“You have to assess affordability both now and in the future not just against the lender’s criteria but everything you know about that client. That’s a big shift. While lenders are ultimately responsible for affordability advisers are responsible for making sure the advice you’re giving is appropriate and in the best interests of the consumer.”
