Malone says if a direct deal is 15 to 20 basis points less than a broker deal, clients will still go through brokers as they understand the value of advice, particularly in the current market conditions.
Council of Mortgage Lenders’ figures show that intermediaries’ market share rose in the first quarter of this year compared with the same period last year.
Intermediaries’ share of the first-time buyer market increased from 72.8 to 82.5 per cent. Their share of the homemover market rose from 62.5 to 66.4 per cent and their remortgage share increased from 68.2 to 79.1 per cent.
Malone stands by the statements made by his firm and six other major mortgage distributors in an open letter in April which called on intermediaries to understand and make allowances for the strain the credit crunch is placing on lenders.
In an interview, Malone says: “The open letter was an honest approach by seven of the major distributors in the UK trying to assist the lending fraternity and give an indication to intermediaries that the marketplace we are in is not straightforward.”
He says since the letter was written, all the major lenders have told him that even during this period, business volumes through intermediaries have been greater in real terms than last year.
Malone also revealed that Premier Mortgage Service is looking to promote guaranteed savings products by the end of this year. He says: “The message is to try and encourage intermediaries to have a more correct view of looking at their client, not just for borrowing but for savings.”
Mortgageforce chief executive Rob Clifford says: “Tough market conditions require innovative thinking. I think a lot of the clubs, networks and franchises will look at doing this.”