Brokers are seeing an increasing number of staff leaving to work for lenders in-house only to end up returning to the broker sector.
Under the Mortgage Market Review, which comes into effect in April, non-advised sales will be banned where there is any form of “interactive dialogue” with a customer. Borrowers can change their repayment method, switch rates and take out retention deals without advice as long as they do not wish to borrow more.
The rules have prompted concerns that lenders would try to poach brokers and recruit them to in-house roles.
But brokers say the reality is very different.
John Charcol senior technical manager Ray Boulger says: “The regulator’s rules on sales incentives, which limit the ability of lenders to incentivise particular financial product sales, mean the option of joining a lender is no longer as attractive as it might once have been. We have seen four separate cases of brokers leaving to join lenders only to return to the broking industry.”
Your Mortgage Decisions director Dominik Lipnicki says: “We suspected a couple of years ago that lenders may resort to poaching brokers, when we first saw the MMR changes. But I have not seen a rush for that to happen.
“If anything, we are seeing plenty of lender or ex-lender brokers trying to join us. I may have to eat my words but in truth I cannot see many of our brokers leaving to join a lender.”