The Mortgage Business estimates the packager market to be worth 28bn-30bn.
In what is widely believed to be the first such published figures on the sector, the HBOS lender says the sector has grown by 30 per cent since regulation, with the rise coming despite a number of industry figures warning that there would be no place for packagers after regulation.
However, there are still threats to the sector, with a number of lenders cutting their panels and promoting more direct-to-broker business. It is generally regarded that old-fashioned packagers which have failed to adapt to new technology or processes will gradually fall by the wayside, leaving an elite in a scenario of survival of the fittest.
TMB managing director Nigel Payne says: “These numbers clearly illustrate the important role being played by the packager market in the mortgage industry. It is well documented that many industry figures predicted the demise of the packager market following regulation. In reality, the size of the packager market has not just stabilised, it has soared to record levels.”
Packager EM managing director Roger Morris says: “These findings are incredibly positive after the doom and gloom predictions of the fate of packagers after M-Day. However, this figure comes as no surprise to us as a packager as we understand the value of this role within the industry. I applaud TMB’s recognition of the services that packagers provide to brokers.”
Enterprise Group chief executive Michael Clapper says: “The old school packager is dead but the ones with the good relationships with lenders and brokers and the forward thinking ones are still about and have put an end to the old-school distributors so we have seen the emergence of the fittest ones.”