"It’s clear that brokers who are willing to tackle the more complicated cases for their clients are going to prosper in the long run."
The lender undertook a survey of mortgage brokers and the specialist market and found that nearly half of brokers earned more for specialist cases in 2017 compared to mainstream cases. According to the study, 48% of the brokers interviewed charged an average fee of £748 for specialist cases, compared to £445 for mainstream cases.
What this study does is shine the light on how useful brokers can be. The increased fee on specialist cases reflects the complex work involved. It’s clear that brokers who are willing to tackle the more complicated cases for their clients are going to prosper in the long run.
The reason these findings are so interesting at the moment is that we seem to be in the midst of a debate about the worth of brokers. With technology moving forwards and firms coming to the market which allow borrowers to converse with a chatbot, there is growing concern about what role brokers will play going forward and whether there is any chance they will become surplus to requirements.
Surely this research demonstrates why that should not be a concern.
Indeed, in the ongoing debate surrounding robo advice and the future of mortgage brokers this study should bring some positivity. Despite technological advances, we are a long way off a point where chatbots and AI will be able to properly assess and evaluate a complex case and find the most suitable solution. At present they offer a simple fact finding approach and while that can be of use to the most vanilla of cases, for specialist and complex deals they cannot compete with an experienced adviser.
And with buy to let now much more challenging than it was some years ago, it’s clear that specialist advice is required. If you’re willing and able to provide that specialist, detailed advice you will reap the rewards.
Surely that’s something for us all to be positive about.
