I think that you should definitely start the TREAT BROKERS FAIRLY campaign. I have a banking background and moved across to being an independent mortgage adviser nearly three years ago, even in this market I do not look back.
I would like to pose a question at this time about cost of introducers versus direct channels:
How much does it cost to recruit, train, pay and in rare cases commission a direct member of staff? In my experience, I left a salary of £24,000 per year (not forgetting the other costs, such as compliance, ongoing training, employers NI and pension contributions) and averaged 6 sign ups per month. At the time this was above average as I was in the top 300 of 750 advisers. Now if I pass business to a lender they only have to pay me once they get my business to complete.
So, and please let me know if I have missed the point, is it cheaper for that lender to pay a direct member of staff?
My other point here would be on the value of a good broker. When at the bank and we had a decent product, say a two year tracker, and the fixed rates you had were not as good, I would bet if you were to investigate the increase in tracker sales related to fixed rate sales verse what was actually good for the client you would find huge areas of mis-selling. As an independent mortgage adviser the obvious difference is that you can sell to the clients needs and not the best product your company has to offer!
Lastly, I am sure that I am not alone when I say that not every client knows everything about mortgages, and how they work, and which one suits their needs. Every mortgage should be recommended with professional advice, as there are many occasions when you interview a client when they think that they need a tracker yet every thing they are telling you screams fixed rate!
Brokers are in my biased opinion a far greater asset to any lender than its direct staff, (think of the office saving costs, and compliance managers, area managers that I have just made redundant)! We also have the ability to really get to know our clients over a longer period of time and help them to acheive their dreams.
