High-earning BDMs prompt concern
The lenders are reportedly paying their business development managers (BDMs) much higher than the industry norm, with figures between £70,000 and £110,000 per year as a basic wage being touted.
This has led to fears that the level of remuneration for BDMs is unsustainable and the costs could be passed onto customers.
John Malone, managing director of Premier Mortgage Services, said: “If they are paying that much, they should be doing more for the broker with higher procuration fees and providing better rates for the client.”
Mark Bergin, sales and marketing director at db mortgages, said the firm was not paying over the odds. “You are always trying to find the best people and sometimes you have to pay a little more. However, we are paying market rate and I can’t see a direct correlation between the two issues.
“We have a budget for running the business and I do not see how the sales peoples’ wages would filter through and effect a firm’s product pricing. For me, they are a divorced issue.”
Platform recently advertised for BDMs offering £60,000 ote, but it said it was not motivated by what other lenders were doing.
Paul Hunt, head of marketing at Platform, said: “Our BDMs play a very important role for the organisation and in many instances they travel long distances to promote the company. Therefore, we expect them to be adequately rewarded for the work they do.”
However, other lenders are seemingly unfazed about the reportedly high salaries.
Paul Marland, assistant general manager intermediary sales at West Brom for Intermediaries, said: “Ultimately they are new organisations in the sector, despite the massive backing some of them have. Therefore, strategies could change if results are disappointing so maybe they are having to pay more to offset the potential long-term risks to the jobs.”