Mortgage intermediaries are increasingly looking to sell other products, including electricity and gas, to make ends meet in the recession.
Research from Datamonitor found brokers are suffering from the extreme downturn in lending volumes and are seeking new revenue streams to keep their business going.
A survey of intermediaries found three quarters were maximising their cross-selling opportunities as the credit crunch has forced them to seek additional income.
Commonly, brokers are speaking to customers about general insurance such as buildings and contents cover.
Hlowever, some are also looking to refer business to gas and electricity suppliers as well as debt management specialists.
Datamonitor says intermediaries are also looking at opportunities to sell protection policies, but thinks they may find this difficult.
"Negative publicity, tightened regulation and a perception that protection policies are expendable when budgets are tight suggests that mortgage intermediaries will have a tough time selling them over the coming months," a Datamonitor report says.
Around 75% of intermediaries surveyed are also considering advising on investments and pensions, but tight regulation and increasing qualification requirements are putting mortgage brokers off.
Datamonitor expects the mortgage market to begin to recover in 2010, and thinks intermediaries who can sustain their business through 2009 by cross-selling will be a strong position to build on a revival in the market.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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