Brokers could charge fees for direct mortgage help-Defaqto

clock

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.”...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read