The latest Mortgage Solutions poll revealed that only 34% of the industry believes the launch of M&S mortgages will be positive for the industry, while 20% disagree.
A further 24% of respondents said they expected the launch to make little or no change to the market place, while 22% said it was far too early to tell.
Last week, the retail giant announced plans to rebrand its existing M&S Money service and offer current accounts and mortgages for the first time. It has confirmed that it will not offer any mortgages until at least 2013, but has yet to announce whether it will be offering mortgage products via intermediaries.
Steve Biggs, adviser at APH Mortgages said that while he welcomes new lenders into the market place, he insists that it will make little difference if it does not engage with intermediaries.
He said: “I imagine M&S won’t be engaging with the intermediary market. Because of the market place that I’m in and the clients that I represent, M&S opening a mortgage shop will have little relevance to me because it is not something I can work with.
“They are a powerful brand, so in opening up like this they are in direct competition with me. If they engage with intermediaries, then they will get my support.”
Terry McCutcheon, group chief executive at advice firm, Financial Planning Group added: “The interesting thing with M&S is that they say they have a lot of financial experience because they’ve had M&S credit cards and loans for years, but mortgages are different and are a much more skilled proposition. You need a different type of person advising on mortgages, rather than just someone working at a call centre handing out money.
“I think M&S is trying to go for a niche part of the market by trying to keep their own customers with them. If you shop at M&S and you get your mortgage with them, you’re less likely to go into Sainsbury’s. I think this is the field they’re looking at.”
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