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Brokers bitter at lack of backing

Statistics from NMG Financial Services Consulting suggest that lenders are failing to provide support for mortgage brokers.

In its monthly mortgage intermediary census barometer, the consultancy firm reveals a further drop in the number of brokers who feel that lenders offer them enough support.

A total of 200 brokers were asked a series of questions and asked to offer a mark on a scale from one to five, with five being the most positive response. The results shows that brokers’ rating for lender support fell from 2.2 in April to 1.8 in May.

The score for a question on which lenders treated brokers fairly dropped from from 2.1 to 1.8. NMG head of mortgage proposition Jonathan Barrett says brokers are feeling let down by lenders.

He says: “It seems that the continued dual-pricing and the last-minute removal of rates is giving brokers reasons to mark more lenders with a negative score, pulling the overall index down. As an index, no broker now has a positive score on how lenders treat them.”

However, Unleash Advice Partnership IFA Adrian Kidd believes that brokers are using dual-pricing as an excuse.

He says: “People are using dual-pricing as the primary reason but it is more about the actual availability of fin- ance and products.”

The index shows that 35 per cent of brokers are feeling much less confident about the future of their own business, up from 28 per cent in April. Fifty-one percent feel much less confident about the market overall.

Kidd says: “The confidence drop is based mostly on the fact that brokers think business levels are not really going to explode from where they are now. We are already 30 to 40 per cent down on last year and, the fact that a huge amount of products are not available to us now.”

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