The warning comes as lenders increasingly cut back on the number of distributors they choose to work with in the future.
Gemma Harle, managing director at Mortgage Next, said: “We are starting to see a growing trend for lenders to restrict the number of distributors they work with, in order to control both the quality and volume of new mortgage business. This trend is likely to continue until we see an improvement in market conditions, which could be some time away.
“The consequence of this development is that distributor have’s and have not’s are starting to emerge, with some networks, clubs and packagers having extensive lender panels and others being left with limited panels and a restricted choice of products.
“It is no longer the case that all networks, clubs and packagers are the same and significant differences are starting to become apparent which brokers need to understand. Over the next 18 months one of the key factors determining brokers’ choice of distributor will be size and scope of their lender panel, rather than proc fees or even service levels. As is often the case, the strong distributors will become stronger and the weak will struggle to survive.”
