Kevin Roberts, director of the club, noted that this pressure and tightening of margins was leading to “curiosity” about exploring different market areas.
Speaking at Mortgage Solutions’ The Mortgage and Protection Event, Roberts highlighted that it was important for brokers to understand what lenders were going through.
“We are seeing lenders go up the risk curve in order to find margin in criteria improvements and some of the specialist lenders are doing well,” he told the audience in Manchester.
“But they are feeling the pressure and we have to bear that in mind. From a proc fee perspective, the proc fees they have been paying brokers have also been rising.
“So with the competition on margin and the distribution costs rising, they are being curious,” he added.
No imminent threats
Roberts explained that while this was a “little bit of a threat”, in the same situation brokers would also be looking at their businesses thinking they needed to be curious about doing other things.
“I’m not hearing any imminent threats to proc fees or similar, but they are being curious in terms of if this environment continues, how can they ensure that they can grow their margin,” he continued.
“At the moment, it’s going up the risk curve and working harder to get your business.
“But there’s some curiosity there, and when we marry that with the regulation we look at, you can see where some of that curiosity might be going,” he added.
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