You are here: Home - News -

BSA conference: Lenders readying as FCA expected to ‘open door’ to guided online mortgage advice

by:
  • 04/05/2017
  • 0
BSA conference: Lenders readying as FCA expected to ‘open door’ to guided online mortgage advice
A number of mortgage lenders are already preparing guided advice models with the expectation that the Financial Conduct Authority (FCA) will allow more developed robo-advice processes to be introduced.

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.”

There are 1 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Roland McCormack
TSB cuts buy-to-let rates

TSB has cut rates on selected buy-to-let purchase and remortgage deals.

Close