that deal and then pushing a client to go direct and we’re getting nothing. I’ve heard about the amount of funds they’re putting out there and it’s like trying to get tickets to a Coldplay concert that’s just come out and you have absolutely no chance. I’d like to think that a lot of other lenders aren’t going to go that route but time will tell.
DO YOU THINK THAT THERE ARE OTHER TOOLS LIKE THAT WHICH LENDERS ARE USING TO CONTROL THEIR DISTRIBUTION? Robert Sinclair: Ultimately we need an ongoing relationship with lenders even if we dislike some of the things they do. But when you look at the amount of mortgage lending we’re doing January and February and we’re way ahead of the £138bn which we did last year as an industry. The Council of Mortgage Lenders’ predicted figures were £130bn at the start of the year and we’re running close to £150bn at this rate. That means that banks like Barclays, and they’ve been clear about this, they want to do 50:50 branch and intermediary and they don’t want to move away from that. Now it’s not a comfortable place
to be but what they’re saying is that intermediaries have had their £5bn and our branches have only done £3.5bn and so that’s why clients can walk in and get it. Their branch staff are still useless. They can’t sell and until we hand it on a plate to them they can’t fulfil it. But they’re not prepared to make the strategic sensible decision to move a billion over to intermediary. They won’t do it.
Peter Brodnicki: Over recent years you’ve seen a resurgence of direct deals depending on what’s available for brokers. It’s going to happen and it’s going to come in unannounced. We’ve just got to be versatile enough to deal with it. I certainly don’t think there’s an excuse for not giving brokers notice and dealing with that thing in a far more professional way but I do understand why it happens.
I’VE HEARD OF A RUMOUR THAT SEVERAL OTHER LARGE LENDERS ARE GOING TO COME OUT MORE OPENLY AND SAY THEY’RE GOING TO LIMIT THEIR DISTRIBUTIONS TO THE LARGER NETWORKS IN THE NEXT THREE TO SIX
MONTHS. IF THAT DOES HAPPEN, HOW DOES THAT AFFECT THE WIDER MARKET AND ALL OF THOSE DAS, INDIVIDUAL FIRMS AND SMALLER NETWORKS? NS: I just don’t see the biggest lenders being able to do this and achieve their business aims. It will suit others to control volume and capital. Barclays for example tranche manages to keep a control on volume. It will depend on the individual lenders and their share aspirations. PB: If you’re a lender and you have a limited amount of money to lend then you don’t need all the distribution out there to lend it. If you’re going to lend then surely you’ll do it in a way that is the most cost-effective way. The reality for some distributors is that they’ll need to sit under a firm which is at the top table and they’ll benefit to the access to those deals. David Copland: At least have a strategic relationship, not necessarily join the largest networks, to get to the top table as far as the products and procuration fee are concerned. If that happens then you’ll see more people saying they need a strategic
(From left to right) Nigel Stockton, financial services director at Countrywide; Lea Karasavvas, managing director of Prolific Mortgage Finance; David Copland, chief executive officer at Pink Home Loans; Robert Sinclair, director at the Association of Mortgage Intermediaries; Peter Brodnicki, chief executive officer at Mortgage Advice Bureau
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MORTGAGE INTRODUCERAPRIL 2012 35
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