Wages among BDMs had rocketed in the last 18 months as new entrants offered increasingly competitive packages to attract the best people into their employ, raising the bar across the industry.
However, with lenders cutting back on the business they are trying to attract – resulting in redundancies among staff – the brake has been placed on rising salaries, which is predicted to continue into the post-crunch era.
Ian Giles, director of marketing at Kensington Mortgages, commented: “Salaries, especially for particular skills like BDMs, are subject to particular supply and demand issues and last year, there was a finite supply and infinite demand on the back of the new entrants. However, with the industry dynamics as they are now, salary levels won’t be the same as before because of redundancies. Even top BDMs, who are experienced and good at their jobs, will have to alter their remuneration outlook.”
Gus Park, director of intermediary sales at Mortgage Express, admitted that there had already been a shift in the BDM market.
“BDMs are still critical for us and we are in the process of recruiting. However, it is a much different environment for recruiting compared to six months ago.”
For Bob Sturges, director of communications at Money Partners, the move drew comparisons with other areas of the market.
“In the wider market, we are seeing a flight to quality and we are now seeing this in individuals too. There had been a frenzy over recruiting BDMs, resulting in competent people earning superstar salaries. But now there has been a long overdue correction and lenders will see if they have the right people in the job.”
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