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.
“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.”