Many of the changes are for the better, says mortgage club director
The mortgage industry is unrecognisable from what it was – for the better - following twenty years of regulation, according to Lisa Martin (pictured) from mortgage club TMA.
Martin, who is development director at TMA, believes that the embedding of Consumer Duty into the sector’s culture is the next challenge, but welcomes the opportunity to deliver good customer outcomes.
TMA aims to assist directly authorised businesses within the UK intermediary market, through its training programme, technology solutions, compliance support and relationship management. More than 1,500 people attended its 60-plus events in 2023.
What is the biggest change to the mortgage industry?
“Clearly the biggest change has been driven by the volume of regulatory directives since 2004,” Martin told Mortgage Introducer. “The industry has changed beyond recognition which, in many ways, has been for the better.
“Consumer Duty is the next challenge, not only from a logistical point of view but from a cultural one too that will challenge us all to think long and hard about what we do when it comes to issues around foreseeable harm and vulnerability.”
Martin considers that current market conditions will enable brokers to enhance their support for borrowers.
“Over and above the trajectory of interest rates and the right product advice, the idea of customer advice is evolving to include not only what we recommended as advisers but what did we not advise on, in terms of supporting foreseeable harm,” she reasoned.
“This challenge of thinking about our aging population differently brings huge opportunities for brokers to either expand their offerings, or partner with another firm to do so, and deliver a form of total wrap-around care for borrowers.”
READ MORE: TMA Mortgage Club adds Dudley BS to lender
What can brokers offer in the current market?
Brokers are in a ‘unique position’ to offer a broad range of advice on many products, Martin considers, either through their own firms or through partnerships.
“The point is that doing the right thing at the right time for the right reason goes beyond the transactional product,” she said. “It is not about simply cross-selling but making sure the right advice was given - we know this is happening and brokers are evolving. Fifty-six per cent of our 560 firms use us for additional services other than the use of the mortgage proposition.”
Supporting positive customer outcomes and working with the people who make up the profession, is what Martin particularly enjoys about the industry. “The myriad of opportunities to support good customer outcomes is hugely satisfying,” she shared.
Martin acknowledges that while TMA is smaller than other mortgage clubs, is has the benefit of scale that comes from being part of LSL Property Services Group of companies.
“Financial strength, market leading rates and panel breadth, access to field compliance experts and a suite of supporting products and services such as GI, Protection, technology and PII are available to all our members,” she noted. “But we are different also because, whilst mortgage clubs do not need to be regulated, we are a trading style of a regulated business and can provide additional support.
“For instance, we can deliver business consultancy with business principals, to support working on, and protecting and growing their businesses too.”
Martin summed up: “It is so gratifying to see and, in some way or another, be part of the success of so many firms and the people who work in them. It’s never boring!”
