Brokers may need to consider charging fees to advise on direct mortgages available on the high street as more lenders pull their ranges sold through intermediaries, Defaqto principal consultant on banking says.
David Black says mortgage intermediaries still have a part to play in the volatile mortgage market. He says many prospective borrowers will have to spend a lot of time trying to find the best mortgage deals available as lenders increasingly focus on their own direct mortgage offerings. "There's nothing to stop brokers recommending a ‘direct only' mortgage but unless the broker charges the borrower an advice fee they won't earn any commission on the mortgage,” he says. “To do this they could help the borrower fill out all the paperwork and then get the borrower to submit the application.”...
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