Shearman said: “The number of cases that come through a lenders’ branch now only justifies about one adviser across three or four branches. At that point the relationship with the clients will fail.
“The model of having a number of tellers feeding leads to a mortgage adviser is just not working so you see a lot of branch based lenders struggling.”
Shearman added that this presented an opportunity for intermediaries and played into their hands to build up a strong client relationship and reinforce the demand for mortgage advice.
He referred to the Association of British Insurers Quarterly Consumer Survey 2011 Q3 which said that consumers had the most difficulty understanding mortgages. This was followed by pensions and investments and protection.
“If this doesn’t scream for the need for advice then I don’t know what does.”
