Hamptons International Mortgages managing director Kevin Duffy says “mediocre” and overpaid mortgage advisers are plaguing the market.
He says many individual brokers and their managers are simply not good enough, and are only still in their jobs due to the shortage of new talent.
Duffy doubts whether some will last what many are predicting will be a year when the market contracts due to rising interest rates and lenders’ retention schemes.
The blast comes just a few weeks after the FSA complained that standards, particularly among small brokers, are not up to scratch.
Duffy says: “Many are what I would call journeymen, operating in a comfort zone simply because the skills shortage is so emphatically in their favour. Salary inflation is rampant to the extent that distinctly average consultants get £50,000 basic. This might be more palatable but for the fact that the actual sales management of some of these people leaves even more to be desired. Too many are yesterday’s failed salespeople and are quite simply box-tickers.
“Most of today’s advisers have never had to perform in a downturning market but, more pointedly, most of their sales managers haven’t. Rising rates coupled with foaming property values and the impact of lender retention strategies may scale the market size back to beneath £300bn.”
Accord Mortgages managing director Linda Will says: “There are the odd cowboys but there are an awful lot of hard working and switched-on individuals.”