Speaking at the Open Banking expo in London last week, Mojo’s chief executive Richard Hayes (pictured) said his firm had already agreed deals with lenders that would allow them to offer ‘exclusive market-leading rates’ through an execution-only channel.
The online broker said it was exploring the possibility of offering an execution-only option for borrowers who wanted a like-for-like remortgage and also those who wanted to raise capital. This would exclude debt consolidation capital raising.
Hayes said: “If [the] customer is light touch; a like-for-like remortgage, a simple process, and we have not evidenced anything in our onboarding experience that makes us feel like that customer should have advice [execution-only would be suitable].”
Hayes said if there had been significant changes in the borrower’s employment history or income in the last 12 months, if their family had grown in number, or any usual spending habits were evident, then the borrower would be channelled through the advice route. Where no advice flags were raised, borrowers would be able to pick their own products and go directly to the lender.
He added: “What we have already gathered from the lenders is that where we can deliver execution-only experiences we can also deliver exclusive market-leading rates.
“We get paid a bit less but the benefit to the customer is that they get a cheaper mortgage which is fundamentally the most important thing from our perspective.”
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Execution-only has a rightful place in the market, allowing customers to make the most appropriate decision for their circumstances.
“However, offering cheaper rates for non-advised cases compared to an advised mortgage could lead to a customer choosing the cheapest product instead of the most appropriate product, with all the issues that could bring.”