From MMR to the new powers for the Bank of England to set limits on lending ratios and the upcoming Mortgage Credit Directive, brokers are more important than ever in helping to guide customers through the increasingly complex mortgage process.
Recent research from the Intermediary Mortgage Lenders Association showed that 84 per cent of brokers had been unable to source a mortgage for at least one client during the past six months, up from 78 per cent in July last year.
With almost three-quarters of intermediaries and two-thirds of lenders believing the market has become more conservative in its lending, it is vital that increasing complexity does not result in customers being denied finance from those unwilling to adapt to a changing market landscape.
As the UK continues its recovery from the economic downturn, the changes to the regulatory structure and greater complexity in the mortgage process is steering more and more people towards brokers for advice on what is likely be the largest purchase of their lives.
While a greater product choice and more tailored financing options are an extremely positive development for customers looking to get the best deal available, there is now a definite focus on the quality of advice being provided.
Interestingly, recent data from the Council of Mortgage Lenders shows that brokers had a 60 per cent share of the market in the third quarter of last year.
In the current environment, it is no surprise that a recent poll showed over a quarter of those surveyed believed that the market share of brokers would climb to above 70 per cent in 2015.
For lenders and brokers looking to take advantage of the brightening economic environment in the UK, there is a great responsibility to keep up to date with new developments in the market and to foster closer working relationships to ensure that the correct advice is provided.
In an increasingly competitive market, those who are able to become experts in their chosen sector will excel, and an in-depth knowledge of the differences between lenders will be paramount.
Rising confidence among brokers and customers is extremely encouraging, and lenders need to adapt to an evolving market that will most likely see broker’s market share increase and a further rise in the range of specialist products designed to meet specific customer needs.
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