The lender believed changes to the sector over the last 18 months, with increasing numbers of new lenders and brokers entering the market, had meant that the master broker route to market was the only viable method.
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It also urged brokers who were new to the sector to consider putting their cases through master brokers to ensure that the whole process was fully compliant.
Bob Sturges, director of communications at Money Partners, commented: “We have made the decision for a number of reasons, but the main thing has been the expansion that the sector has undergone. We anticipate the level of broker entrants to continue climbing but we don’t expect them to understand everything straight away. Master brokers have great contact with lenders and they have a deep understanding of the products and processes, while many of the forward-thinking ones have invested in sourcing system technology which gives them a distinct advantage.”
Sturges admitted the lender was not ruling out the direct-to-broker route altogether, but believed the position which master brokers occupied meant it was not viable at the moment.
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John Webster, chief executive at Swift, believed the situation mirrored the non-conforming sector a few years ago.
“The situation
draws similarities with the non-conforming sector and the big role packagers have in helping new intermediaries into the market.”
