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Adviser outlines competition barriers in mortgage market – Star Letter 03/02/2017

  • 03/02/2017
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Each week Mortgage Solutions and its sister title Specialist Lending Solutions looks back at the week's most thoughtful, thought provoking and controversial comments to single out the Star Letter.

This week’s Star Letter goes to Robert Gill for his comments on What the market would like to see in the FCA’s competition review – Marketwatch

Whole of market advised intermediation is the best outcome for consumers.

Current barriers to the optimal achievement of this across the market include;

  • Unequal product distribution
  • Lack of investment in existing sourcing technology and lack of responsibility from lenders for the accuracy of lending criteria in sourcing systems
  • Lack of supply chain integration
  • Lack of co-operation with intermediaries from certain lenders for existing customers
  • Poor interpretation of MMR rules from lenders (mortgage prisoners) and brokers (compliance overkill)
  • The emergence of robo-advisers who will look to build algorithms to improve the sourcing process, but will inevitably skew the market in favour of lenders that have the capability to participate. I have already spoken with a fintech start-up who plans to build a sourcing system that obtains decision in principles with only the lenders that offer a soft-footprint!

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