Eighty per cent of IFAs and mortgage brokers are considering leaving or will leave the mortgage market when regulation starts in October, according to a survey carried out by mortgage intermediary firm Cartel.
Chief executive Carl Wright says he expects the volume of mortgage transactions in the UK to fall over the next 12 months as brokers start to leave the market.
He predicts that a big percentage of the estimated 36,500 mortgage brokers will not complete their applications for FSA authorisation before October.
Cartel is recruiting mortgage advisers, offering them a basic salary of £36,000 and a £40,000 bonus option along with regulation and compliance support and leads from its call centres in the UK, India and Egypt.
Wright says a Cemap-registered underwriter looks at every proposal to prevent salespeople at the point of sale giving advice from a commission basis.
Cartel has 102 mortgage advisers registered with the Mortgage Code Compliance Board and aims to recruit a further 150 in the next 10 months.
Wright says: “The volume of transactions in the UK mortgage market over the next 12 months is going to go down as brokers start to leave. Our survey reveals that 80 per cent of IFAs and mortgage brokers are either thinking about leaving the mortgage market or are going to leave it.”
The survey probed the views of 2,000 mortgage brokers and IFAs from January to March.