I was intrigued by the outpouring of sympathy for the plight of lenders, expressed by a number of distributors in an open letter to intermediaries.
I am not sure what the letter intended to achieve. It pointed out that times are tough and that lenders are experiencing funding problems and are trying to protect their own liquidity positions. It also encouraged brokers to get clients to save more and not think too badly of lenders if they try to sell mortgages through branches rather than via intermediaries.
What a strange message. Is this a plea from distributors to lenders that ‘if we are nice to you, please be nice to us’? If it is, I do not think it is going to make a blind bit of difference.
Brokers are only too aware of what is happening in the market and why lenders are being forced to make the decisions they are making. At the end of the day, brokers represent the interests of their clients and it is their job to find the best deals available from those lenders who remain active in the market.
Likewise, distributors must continue to demonstrate their ability to add value both for brokers and lenders. If they can they have a future, if they can’t, they do not.
Yes, life is tough for everyone but that is the way it is going to be. There is still business to be done and I think we would all be better getting on with the job in hand rather than issuing public statements of sympathy.