Edeus chief executive Michael Bolton has issued a rallying cry to mortgage brokers and warned them not to be complacent about their dominant share of distribution.
Speaking at Money Marketing Live in London last week, Bolton also called on brokers that have retention relationships to push for trail commission if the lender gets to keep the client.
He said: “Brokers have turned out to be the winners since M-Day. They represent around 80 per cent of distribution in the specialist market while the high street has suffered quite a bit.”
But Bolton warned there that is no room for complacency. He said: “The traditional retail outfits are not going to suffer this diminishing share. We are already seeing them go into the specialist market which is brokers’ most lucrative sector.
“My advice to you is that you had better be on your guard as lenders are looking to get your share of the market.”
Bolton has long been a critic of retention fees, branding them a “smokescreen”.
He said: “If you do have a retention relationship with a lender, make sure that you have some sort of contract in place which obligates the lender to pay you if they keep that client for the next 10 years. Make sure you get the lender to give you some trail commission.”
Bolton also called for mortgage sourcing systems to become regulated to root out the cowboys and provide a level playing field across the industry.
He said: “In a regulated mortgage industry, there is no room for unregulated elements in the industry.”