Nearly half of mortgage brokers believe Catmarked mortgages will prove to
be poor value for consumers, according to the latest findings from TMB
The survey, commissioned by packager The Mortgage Business, shows brokers
are seriously concerned that the introduction of Catmarked mortgages will
have a detrimental effect on sales.
The news follows indus trywide concern that Catmarked mortgages may appear
to be endorsed by the Government when they are simply a benchmark not
suitable for all consumers.
The Government finalised plans for Cat loans last week, which include
forbidding brokers to charge for advice on any Catmarked mortgages.
Of the 100 brokers questioned in the survey, 56 believe that Catmarked
mort- gages would not benefit mortgage sales.
Many intermediaries felt Catmarked products could represent poor value for
money and would ultimately restrict the range of mortgage products
Thirty-five per cent of brokers were more optimistic, believing the
introduction of Catmarked products would deliver benefits to clients by
helping them select the right mortgage.
Baxter Business Consultants partner Nick Baxter says: “I don’ think that
you can say Cats are going to be bad for sales but they will limit consumer
choice if they become the norm.
“But if the Cat debate raises the profile of the terms and conditions
attached to mortgages and this encourages consumers to consider more than
one element, then this will be good for the market.”