“The underlying mantra of our regulator is to protect the consumer but we are now reaching a point where the question has to be asked, at what cost?
“With the latest focus on lenders knowing their broker, providing the ideal excuse for lenders to reduce procuration fees and limit their products to key networks, this will undoubtedly have an impact on the consumer.
“That same consumer relies on the professionalism, knowledge, qualifications and genuine whole of market objectivity.
“In some cases the consumer has used the same directly authorised broker through several family generations who has now been either forced out of the market entirely or alternatively been forced to work as an appointed representative or under a larger organisation potentially charging higher fees and working with limited panels to maximise income.
“Gone is the independent and genuine whole of market option previously available to the customer.
“Self-certification and fast track, whilst I agree this was somewhat abused, provided a facility for those clients with multiple income sources, and the self-employed to obtain a mortgage.
“It is widely recognised that these types of loan actually had some of the lowest arrears, yet the facility has been removed.
“Clients are now seeking alternative more expensive options such as secured loans, bridging and other non-regulated options.
“The latest issues over dual pricing will also have a negative impact on the client.
“Whilst brokers screech and wail about the unfairness of dual pricing and the effect this is having on their livelihoods, the counter argument appears to be quite simply 'it's the lenders’ turn'.
“Yes lenders currently seem to be spending copious amounts of money advertising their wares but it seems they are missing the point.
“Statistics still show that clients prefer to take advice from a broker offering choice rather than a lender offering limited products and let's not forget, what they giveth with one hand...
“Yes a mortgage taken direct with the provider may be cheaper but the staff are then targeting cross sales of loaded premium insurance products so the client can end up no better off.
“It's quite clear that when the dual pricing barometer swings in the direction of the lender, the client again loses.
“Given as I mentioned earlier the regulator is all about consumer protection, one would suppose that numerous questionnaires have been requested from said consumer to understand their concerns.
“This would then give the customer comfort that the increased costs they are now incurring are being put to good use addressing their issues and concerns.
“Ultimately the question has to be asked; is it Treating Customers Fairly that the founders of this phrase are causing increased financial burden to many and forcing the cost of independent advice out of reach of others?
“Whilst it cannot be contested that the Financial Services Authority has made a number of positive inroads, equally it seems we have a way to go before our market is once again a balanced environment.”
