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Red tape tying up brokers’ bids for new business

Regulation is stifling brokers’ efforts to stimulate new business, according to Mortgage 2000 managing director Sean Hornsby.

The rules barring cold-calling or making enquiries without following lengthy procedures is hampering brokers’ ability to follow up old clients for new business.

Hornsby and Bradford & Bingley head of product operations David Bitner agreed that there have been very few pilot schemes from lenders in recent months. Hornsby says he has been inundated with lenders which have been pushing for general insurance sales to boost income.

Purely Mortgage chief executive Mark Chilton said it is the lenders in the middle ground of the market, the medium-sized building societies, which will suffer because of what he claims is their their inability to create innovative products.

Newcastle Mortgage Services sales director Tony Ibson said: “If you want to innovate, you can. Those who do not open their eyes to the changing market and innovate will suffer.”

Chilton said: “Middle-sized building societies that depend on introduced business will have difficulties. The willingness of distributors to have lots of small building societies on their panels will disappear.”

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