Santander, HSBC and NatWest were among the big names that recognised the importance of business coming from advisers, on the back of the Intermediary Mortgage Lenders Association’s (IMLA’s) prediction that the share of intermediary-led business would rise to 91% next year.
However, this robustness of the intermediary market helped form the case for the Financial Conduct Authority’s (FCA’s) directive, as the regulator said it should be easier for consumers to obtain a mortgage independently where appropriate.
So, this month, Mortgage Solutions is asking: Do you still feel supported by lenders even with the regulator making direct sales easier? What more can lenders do to show their support?
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Jonathan Needham, business development director of Needham Financial
The adviser-lender relationship only really works when both sides are pulling in the same direction for the customer.
To be fair, many lenders have stepped up here: stronger business development manager (BDM) teams, more time spent coaching advisers, and education sessions that go beyond ‘death by PowerPoint’ on product ranges. It feels like lenders have recognised that relationships are key – and that supporting advisers with knowledge and confidence ultimately helps everyone.
The recent rule change that makes it easier for lenders to talk directly to consumers has raised eyebrows. Advisers are naturally asking: “Does this mean less support for us?” My view is that Consumer Duty changes the conversation. If we’re serious about good customer outcomes, advisers are the ones best placed to deliver them. And the proof is in the numbers – around three-quarters of all UK mortgages are still arranged through intermediaries.
That shows where consumer trust really lies.
And let’s be honest – if lenders did want to push further into direct sales, they’ve got a choice: go back to hiring big adviser teams, or lean on artificial intelligence (AI) to fill the gap. Both come with real challenges. That’s why the intermediary channel remains the smartest, safest way forward.
Advice isn’t a bolt-on; it’s what makes a mortgage fit a life.
Leanne Beales, sales manager at MoneyQuest
Lenders have continued to make an effort, but there hasn’t been much real change. They still invest in broker support teams, and their BDMs are doing a good job of directing advisers to them.
Exclusive products are still available, which reassures me that lenders remain committed to the intermediary channel.
We’ve also seen significant investment in portals and application systems this year to make them easier for advisers to use. That reflects the fact that most mortgage business still goes through advisers, so lenders can’t just step back – they need to keep investing, especially as cases become more complex and advice even more essential.
My recent conversations with BDMs have focused on bespoke cases and having direct access to underwriters, showing a focus on tailored support rather than market-wide changes.
Going forward, I’d like to see exclusive products maintained, continually improving service levels, and for those lenders promoting scheme maturities that originally came through an adviser, to direct those customers back to their adviser, rather than towards online switching.
John Scrivens, head of sales at MoneyQuest
I’ve been attending Stonebridge’s Regional Roadshows, and lenders have shown strong support. In fact, they couldn’t accommodate everyone who wanted to attend and speak with advisers about their continued commitment despite the regulator’s removal of the advice trigger.
Santander, for example, reaffirmed its stance on dual pricing, giving brokers notice before product changes, and highlighting the value of intermediaries – and I don’t think that’s a coincidence.
Mortgage products are becoming more complex, and many lenders don’t have the adviser capacity to deal directly with consumers, which naturally strengthens the intermediary market.
There’s been a lot of positive messaging from lenders, with none saying they’ll return to the days when most business was done directly. Lenders simply couldn’t service that volume without major advances in technology. Manual underwriting remains a point of pride for them, but it therefore relies on human input.
That said, a new friction has emerged. When lenders pursue product transfer business, it can conflict with Consumer Duty and the need for a customer to have an annual review. If a customer goes directly to a lender for their product transfer, their relationship shifts to the lender, making it harder for advisers to maintain contact, especially about protection needs.
We want to speak to customers every year to make sure their arrangements still meet their needs. Lenders’ mortgage letters don’t mention related products, so I’d ask them to direct customers back to their adviser.
