Brokers have also been warned they may have reached their market share peak and the sales process may soon become democratised for those who do not wish to have advice.
At present FCA rules prevent online advice processes being interactive but there appears to be pressure in the market to change that.
IRESS principal mortgage consultant Henry Woodcock told the Building Societies Association conference that he had already had discussions with lenders who were planning to move into the guided advice space.
When asked about whether technology would remove the need for brokers, he said: “There’s a number of lenders I’ve spoken with over the last few months who are looking at [the guided advice] space.
“I think the view is that the FCA will start to open the door a little bit and allow some guided advice in the mortgage space – it’s allowed in wealth management and pensions, why not mortgages?”
Democratising the sales process
Woodcock also warned that brokers might have growth expectations beyond what the market can deliver.
“Interestingly, in our survey brokers expected to increase their market share; its already 70% in total and with one lender it was 93%, so there’s not much further they can actually go,” he continued.
“I think there will be a push towards democratising part of the sales process for consumers who feel confident enough to go through that process themselves without advice.”