60% of mortgages are brokered – make sure you’re the next step in the process
It has been reported that brokered mortgages account for 60% of the current market. With the recent business partnerships developing between lenders and brokers, should conveyancers be working to become more apparent in this expanding network of trusted advisers?
Until a couple of years ago, the vast majority of mortgages were agreed directly with banks and building societies. However the depletion of branches, loss of trust in the system, and more stringent borrowing regulations have led to consumers seeking advice from brokers. Experts in the industry are saying this is a trend that is expected to rise even further.
Following the Mortgage Market Review (MMR), an initial meeting for a mortgage application is now said to take a number of hours. This in-depth analysis of a borrower’s lifestyle is filtering out more consumers than ever before and many are now being rejected who wouldn’t have previously.
On the other hand, home movers are detracted from heading straight to the lenders, as there are extensive waiting lists in order to see one of the specially trained advisers.
In order to create a strong (and seemingly inevitable) link between lenders and brokers, banks are beginning to partner with broker networks and attract business using these third-party professionals. Such partnerships include the reported link between HSBC and Countrywide, with the more recent announcement of TSB working closely with London & Country, which will commence within the next few weeks.
The brokering network may be an untapped resource for many conveyancers, and a perfect way to bring in more business. According to the YouGov Conveyancing 2014 report, less than 10% of home movers currently seek their legal property services recommendations through their broker or financial adviser.
Should you be heading down the path of the lenders and developing connections within the brokering community, or do you believe this will never overtake advice consumers gain from other sources?