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fee and redemption penalties, term or age restrictions for example.” Lenders with this sort of flexibility are not the big six though. Currently Lloyds Banking Group, Royal Bank of Scotland, Nationwide, HSBC, Barclays and Santander account for over 92% of gross mortgage lending. Will the small remainder of lenders willing to look at these complex cases start to take market share from the dominant players? “We have to be realistic,” says Dale.
“We need to accept that the big boys will continue to dominate and take the majority market share on their terms. That said, if they continue to decline perfectly good cases then the market for complex prime can only grow. The certainty is that the lenders we are working with have appetite.”
regulation AToM is already firmly of the view that there is rising demand for packaging in the mortgage market and indeed, there may be changes in store that shift distribution further onto intermediaries in a post Mortgage Market Review world. With individual adviser registration and mandatory Level 3 qualifications for all advisers selling a mortgage (whether advised or non-advised) proposed as part of the regulatory overhaul lenders costs are going up.
Many in the market argue this is an opportunity for intermediaries to take business from lender-based advisers. And indeed, the logic of that argument could be extended to include authorised
THE AToM FAMILY
packagers taking more of the burden of mortgage distribution away from lenders’ branch-based and telephony teams. “We already have a number of people who use us with an RDI structure – that stands for refer direct introducer,” explains Vic. “They’re people who are qualified to do mortgages but actually it’s not their main specialism. They deal with high net worth individuals, who on occasion need to provide their clients with mortgage advice. “We have a growing number of arrangements with this type of introducer where we treat the client as our own for advice, recommendation and professional indemnity purposes and then share the fees with them on completion. “We do not cross sell and the client
remains theirs for everything else. This is a successful and growing element of our business. It’s this type of relationship business I see growing as we head into a more extended regulatory regime.” Vic is also keen to support the need for qualifications in the mortgage advice sector.
“In the past packagers didn’t need to
be regulated and we didn’t need to be qualified,” he says. “But as we go further into this environment, everyone will have to be qualified.” Dale is also concerned about how
regulation might progress in the future, worried, as many are, that some proposals in the RDR (such as the elimination of commission) will be read across into the mortgage market.
Vic is on the same page. “I reckon if you asked 100 people on the street what they wanted, as long as they’re not being penalised on the product they get, they’d rather not see fee structures change away from proc fees. “I don’t think we have ever come
across anyone who’d choose to pay the fee direct. That’s where we’re worried about the future of regulation. What it’s trying to determine is what the customer wants without asking the customer what they want.”
Dale explains that this hasn’t meant they’ve shied away from charging a fee because he believes that’s the way mortgage advice is heading. “I think the market is already moving down the fee-charging road,” he says. “We charge a modest flat fee to clients we see direct which we believe is reasonable given the amount of work we do for the customer.”
the future So it’s all change and no change at AToM. Life is moving on and generations are keeping pace. Vic and Dale will both be involved in the public face of the business from here on out but Vic is handing over the nitty gritty to his eldest son.
For brokers the transition will be seamless. It’s like father like son. For Vic it was aeroplane control panel instruments, for Dale its Twitter, Facebook and LinkedIn. Both embrace the future but only time will tell whether Dale can keep the AToM brand flying high. n
Vic Jannels, chairman Age: 64
Sheila Jannels, finance director Age: 59
Dale Jannels, managing director Age: 37
Neal Jannels, IT manager Age: 29
Tim Henson, governance and compliance director Age: 56
mortgage introducer MAY 2011 37
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