Almost a quarter of mortgage intermediaries (23%) expect consumers to arrange their mortgage directly with a lender if the FCA’s recent proposals are implemented, according to research.
Paragon’s latest quarterly Financial Adviser Confidence Tracking (FACT) survey canvassed the opinion of 200 of the UK’s largest mortgage intermediaries.
Published in May this year, the FCA’s proposals to remove prescriptive requirements around a firm’s execution-only policies are part of plans which aim to encourage innovation and make it easier for consumers to find the right product.
Highlights from the survey included:
- of those respondents who expect the FCA proposals to lead to an increase in direct business, 44% believed that there would be a significant impact on their own business, while 36% thought it would represent a threat to the broker market
- 55% of intermediaries expected the impact of the changes to be minimal
- just 15% of intermediaries planned to adapt their business models to accommodate the changes
“The mortgage market is set for significant change as technological advances streamline routine processes and make inroads into product comparison and selection,” said John Heron, managing director of mortgages at Paragon (pictured above).
“However, choosing a mortgage is a major financial decision and advice can be critical in helping customers look beyond the headline interest rate to understand the full cost and benefits of alternative products.”
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