Packagers remain crucial to the mortgage industry new research from Platform reveals.
The non conforming lender claims the role of packagers in the intermediary mortgage sector will remain important for the foreseeable future and that the primary reason for using packagers is to take advantage of their knowledge of lenders and their access to exclusive mortgage products.
It says 62% of respondents to its survey said the amount of business they would submit to packagers would either increase or remain the same over the next 12 months.
Platform also claims the majority of respondents (42%) said they use packagers most for non-conforming business, then mainstream business (23%), followed by self certification (18%) and buy-to-let (17%).
Paul Hunt, Platform’s head of marketing, says despite ongoing speculation from certain quarters of the industry which might cast doubt on the longevity of the packaging community it is clear their role is very far from obsolete.
“We believe they add considerable value by not only generating substantial volumes of business for lenders but also providing fast turnaround times for intermediaries, enabling them to deliver a superior service to their clients,” he adds.
Sally Laker, managing director of Mortgage Intelligence, says while online decisions-in-principle have allowed brokers to deal direct with lenders, this is only really useful to those intermediaries that see a lot of sub-prime mortgage cases.
Laker says many intermediaries still see packagers as providing a vital service. “Brokers still want packagers to deal with the complexity that is involved in sub-prime mortgage cases and they like that packagers understand that complexity,” she says.
“We all said two years ago packagers wouldn’t survive mortgage regulation and we all got it wrong. In fact packagers are going very well,” she adds.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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