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Increasing mortgage volume will come through brokers – Bob Hunt

by: Bob Hunt
  • 27/05/2014
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Increasing mortgage volume will come through brokers – Bob Hunt
Given our sector can often find it difficult to offer a consensus of opinion, it was particularly pleasing to see the results of the latest broker confidence survey published by Halifax.

Indeed, the polarity of viewpoints that are often offered up by the great and the good in our market were conspicuous in their absence here as a hugely significant 95% of all brokers said they were confident about the overall outlook for the mortgage market.

Perhaps only naturally, I immediately wondered if this survey had taken place pre- or post-MMR given the number of brokers who have been, shall we say, less than enthusiastic about certain lenders’ approach to the new rules.

However, on reflection whether it did or it didn’t is of low relevance anyway given we appear to have a broker profession that is not just increasingly confident about the way the mortgage market is heading but also the prospects for their own businesses working within it.

In fact, one might suggest confidence is at an all-time high given an eye-popping 100% of brokers expressed this view citing the MMR as a reason to anticipate increases in business. To my mind this was proof positive brokers are looking beyond the short-term problems the new mortgage rules might bring and can see down the line to an environment where their services are increasingly in demand.

Where previously the profession has felt exceedingly hard done by and the ‘poor relation’ in comparison with direct distribution channels there appears to be a growing acceptance from lenders that, for want of a better phrase, intermediated is where it’s at. It was interesting to hear representatives from Santander recently acknowledge any increase it wants to see in volumes are likely to come via brokers. Other lenders will undoubtedly feel the same.

Given the troughs that have been endured over the past six years I suspect mortgage advisers are now in a position to take on all challenges and still come out the other side in stronger shape. The market has moved into a position where professional, independent mortgage advice is valued and brokers can be confident not just of their ability to deliver in this area but also the ongoing underlying demand for their services.

Bob Hunt is chief executive of Paradigm Mortgage Services

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