Three out of four mortgage advisers already use at least one "multi-lender" organisation, even befor...
Three out of four mortgage advisers already use at least one "multi-lender" organisation, even before the new multi-tie regime takes effect, says the latest survey from the Intermediary Mortgage Lenders' Association.
Evidence from the trade body which supports advisers, lenders, mortgage packagers and brokers, says the key reason intermediaries are making the switch is the higher fees and commission available through a one-stop shop, while other advisers say their preference towards mortgage clubs or networks tends to be the ease of use and a better range of products.
IMLA chairman John Heron at least half of the brokers who do use mortgage clubs have placed their business with multi-lenders over the last 12 months.
"With better products, less hassle and higher commissions, it is no wonder that Clubs, Networks and Packagers remain popular choices for the mortgage intermediary," says Heron.
"I would expect the growing trend in usage to continue as multi-lender organisations look to offer more services to intermediaries as the date for FSA regulation draws closer. This may well have profound implications for lenders and their distribution strategies as a relatively small number of these organisations will have an increasing opportunity to call the shots."
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