More than three quarters of mortgage intermediaries (84%) say business costs have increased post regulation. With around three-quarters of intermediaries claiming they are increasing their focus on technology as a result.
A further two-thirds (66%) said they are also looking at new ways to streamline business processes.
However, depolarisation has also brought new opportunities as well as challenges, with more than half (53%) of intermediaries saying they intend to take advantage of the depolarisation rules and start offering mortgage related insurance products from a broader range of suppliers.
In addition, more than one in four (27%) of mortgage brokers not currently operating in equity release product areas say they plan to enter this market in the next two years. Commercial property is also being focused on by intermediaries as an area for strong growth, with a further 25% of intermediaries not currently operating in this sector intending to do so in the next two years.
“This research highlights the increased costs that mortgage regulation has brought intermediary businesses but also shows that mortgage brokers are looking for new ways to utilise technology and refine processes to cut other costs from their business,” states Phil Heaton-Jones, Head of Marketing for Marlborough Stirling
“While it is perhaps unsurprising that costs have increased post regulation, it is encouraging to see that the UK intermediary market is proactively looking for new solutions to maintain its competitive edge.”
Trigold CEO Bill Safran commented: “This survey shows that intermediaries are embracing technology to improve their businesses. The intermediary now recognises the positive effect that technology can have on their bottom line and are planning to take full advantage of that.”
