In a market statement today, IMLA says it thinks the market may see a shift in the reward structure with procuration fees playing a less prominent role and fees for advice becoming more important, with ever more emphasis upon high quality standards.
Executive director Peter Williams says: “Given the growing dominance of the intermediary channel over recent years – with over 80 per cent of mortgages introduced via brokers in the first quarter of 2008 – intermediary based sales are certain to return strongly, not least because of the benefit to consumers of providing a wider range of choice and enabling customers to choose based on high quality independent advice.
IMLA stresses that differential pricing and product availability between the intermediary and direct channels are facts of life and in no way reflect a desire on the part of lenders to undermine the role of intermediaries.
Williams says: “This has always been a feature of the market and brokers in the past have benefited from it. The tensions are much more evident now with a reduced market. Shifting distribution to branches is not the cause of the problem but a symptom of the smaller market.
“Similarly, situations where lenders are compelled to reprice or withdraw products at relatively short notice are a market imperative in an environment of scarce product availability where demand often outstrips supply by a significant multiple. Lenders do their very best to co-operate with intermediaries to help them support their customers.”
IMLA says it will continue to work closely with AMI and that a number of IMLA members continue to provide financial support to AMI in recognition of this long term commitment.