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UK brokers to take 75 per cent market share

Britain’s answer to the MFAA has forecast UK brokers will control three-quarters of the market within five years.

The direct or branch channel is in decline in the UK and a number of major financial institutions such as HSBC and the Post Office have recently entered the broker channel.

In addition, the introduction of macroprudentuial tools and a Mortgage Market Review (MMR) earlier in the year have added to the value proposition of independent mortgage advisers.

As reported by UK-based industry publication Mortgage Strategy, TSB is set to enter the broker channel next month and Tesco Bank is also considering a third-party play.

“I think we will see direct-only distribution continue to decline from this point,” Association of Mortgage Intermediaries (AMI) chief executive Robert Sinclair said.

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“With Lloyds announcing branch closures, that’s the start of another period of those but I think banks will continue to have a number of super-branches where they will try to advise on mortgages but there will be fewer of them,” he said.

“We will see smaller lenders becoming 100 per cent intermediated and I think we could see brokers take 75 per cent of the distribution market share within four or five years.”

 

UK brokers to take 75 per cent market share
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