Intermediaries On The Rise

The number of borrowers involving intermediaries, in their search for mortgages, has been seen to be on the increase, according to a financial website.nnDarren Cook, mortgage expert at eMoneyfacts.co.uk, commented in this increase, he said: “With continuing uncertainty in the mortgage market and the total number of products continuing to decline, many more people will be considering approaching an intermediary to find them the best mortgage deal for their circumstances. However, many intermediaries are finding that their choice of products to recommend to clients has been increasingly restricted as more lenders move to offer their most competitive products just for direct only business.nn“Just 49 per cent of deals on the market today are exclusive to intermediaries, whilst 23 per cent are available through both intermediaries and direct business. Although intermediaries have 72 per cent of the market to advise on, it's the deals that are available direct from lenders which are the most competitive.nn“The top 13 deals for a two-year fixed rate mortgage (based on £150K) are only available direct, and of the top 20 deals only three are available via intermediaries.nn“This reduction in competitive deals has led Jonathan Fischel, head of mortgages and credit unions department at the Financial Services Authority, to advise intermediaries to advise on direct only products, and charge a fee for the advice given.nn“He also commented that most sourcing systems do not show direct only products. eMoneyfacts.co.uk has the facility for intermediaries to opt whether or not to include direct only products in their product sourcing. A priceless facility at the current time.nn“However at the moment, the majority of lenders are now receiving more business than they can actually process. If the products that are currently only available direct were also made available to intermediaries, then the lenders would no doubt find other ways to restrict their business volumes, such as further tightening their lending criteria.nn“There are less mortgages being written, and this position is likely to continue for at least the next twelve months. It is likely that mortgage intermediaries will need to widen their scope of financial advices in order to survive.nn“The argument on dual pricing will no doubt continue to rumble on. However, for a long time mortgage clubs and packagers have benefited from exclusive and semi-exclusive deals with lenders. If they are looking for a level playing field, it could be argued that these exclusive deals should also come to an end.”n