Brokers will soon be assessing borrowers with questionable credit ratings on behalf of lenders, according to a study examining what the future of the mortgage market could look like.
The report by the Building Societies Association (BSA) looks ahead to 2020 and suggests a fundamental shift in the role of the mortgage broker.
According to the BSA, this particular change will see brokers adding value to both clients and lenders as by making initial enquiries into the borrower's financial situation, the lender will be able to process the application quicker.
According to the report, compiled by Peter Williams, advisers will have close links with panels of lenders.
"Links between the lender and the broker will be much closer than at present, with the broker undertaking the assessment of the aspirant borrower effectively on behalf of the lender," Williams says.
"The borrowers with the best credit records will be bracketed as 'super prime' and, according to the report, will not tend to turn to financial advisers, utilising direct channels instead.
"Lenders will look to cultivate long-term relationships with these borrowers over a wide range of products and services.
The report predicted lenders will look to launch more packaged products, linking savings and mortgages, as well as exploring a reintroduction of Mortgage Insurance Guarantees and the further development of products that allow parents to use their housing equity to help their children buy a property.
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