'We've reinvented the equity release and later-life world'
As the UK mortgage industry faces evolving challenges, diversification and innovation are critical for brokers looking to stay ahead. Peter Brodnicki (pictured), CEO of the Mortgage Advice Bureau (MAB), shares his thoughts on how specialisation, digital engagement, and a proactive approach can transform the industry.
Diversification: Beyond vanilla solutions
MAB has embraced diversification to strengthen resilience and provide value to clients. Brodnicki highlighted the importance of rethinking traditional approaches.
“We’ve become a little bit vanilla as an industry since 2008,” he said. “Some of those changes were necessary, but one of the long-term consequences is that brokers need to focus on broader areas. Diversification also comes with specialisation.”
One key initiative involves integrating equity release into MAB’s later-life services, which Brodnicki describes as a way to align services with mainstream customer needs: “We’ve reinvented the equity release and later-life world. We’ve trained and authorised specialist brokers internally because we believe these mainstream customers need to be handled differently, not just by specialist equity release firms.”
In addition, MAB has partnered with firms like Optimum to allow brokers to manage specialist areas, such as bridging loans and commercial mortgages. Brodnicki explained: “Many brokers are now saying, ‘I think we should be doing this ourselves rather than handing it off’. Through partnerships, these firms can become ARs and advise on areas like bridging and commercial in their own right.”
Identifying growth areas
Despite a challenging market, MAB has observed growth in certain segments.
“There’s been slightly better performance in the purchase market, though first-time buyers have been slower,” Brodnicki noted. “That’s understandable. We’re keen to explore areas like longer-term fixed rates, shared ownership, and other affordability solutions to help people get on the housing ladder.”
MAB’s innovative Resilient Homes initiative focuses on improving energy efficiency in homes through remortgaging opportunities: “We’re looking at EPC ratings and how we can get customers quotes for energy work to make their homes more efficient,” Brodnicki said. “The savings could be wrapped into a remortgage opportunity.”
Addressing challenges with a structured approach
While diversification is essential, MAB ensures every initiative is well-planned and supported. Brodnicki explains their methodical process: “We plan everything a year to 18 months ahead before implementing it. It’s about making sure all systems, processes, and recruitment efforts are in place. We don’t just hand out licenses for brokers to sell more products - we ensure there’s a business plan and proper support.”
Technology also plays a vital role in these efforts.
“When customers are researching, we want to engage with them digitally, educate them, and help them get to a proceedable position,” he said. “This is about moving away from a purely transactional business model.”
A vision for the future
Looking ahead, Brodnicki emphasized the need for brokers to expand their focus.
“The broker's world will extend further into diversification and specialisation,” he said. “It’s not for everyone, but for those who have the volume and expertise, we provide specialist licenses and resources.”
Emerging trends, such as affordability-focused long-term fixed-rate products and shared ownership, are areas where brokers can make a significant impact.
“Our job as brokers isn’t just to arrange mortgages; it’s to understand how more people can buy homes,” he said. “We need to play a proactive role in working with lenders and regulators to create products that help people get on the property ladder.”
Community at the core
Beyond its services, MAB supports local communities through the Mortgage Advice Bureau Foundation. This initiative funds grassroots projects nominated by brokers and customers. Brodnicki sees this as an extension of the broker’s role.
“A mortgage broker is a vital business within a community,” he said. “People either rent or buy houses, and brokers are at the heart of that. Supporting local communities aligns with what we’re trying to achieve as a business.”
He also emphasises the importance of building not just houses, but communities.
“The government is keen on creating communities rather than just housing developments,” he said. “As brokers, we’re uniquely positioned to help deliver that vision.”
