Brokers believe banks restrict advised sales

Yuan Phoon

December 7, 2011

Figures from the Financial Services Authority revealed that brokers’ market share was just 47% in Q1 2011 down from 51% in Q2 2010.

Direct sales expanded by 11.9% over the same period.

David Sheppard, managing director of London-based Perception Finance, said: “I don’t believe lenders are deliberately restricting sales via intermediaries. However I would say that lending has been difficult across the board and it has been for some time now.

“If you asked borrowers who got their mortgages direct from a branch they would probably testify that lending is difficult as well.

“Why brokers would feel that way? Well lenders are now ensuring more than ever that every piece of documentation they receive is sound before they progress. The processing times of some lenders has also been quite slow of late.

“Ultimately there is always going to be a need for the intermediary. No matter what brokers may think, lenders would not be able to cope with volumes on their own.”

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