FR: Recent research found that 80% of brokers are retaining their ‘independent’ status post-MCD and opting to use a packager - is this something you expected to see?
It is clear that the ‘independent’ tag is still very important to intermediaries. It was crucial to ensure that we were set up to offer service to brokers who wanted to give advice to maintain their independent status, but needed assistance in the choices they had to offer their clients, and those brokers who were happy to refer clients for us to give the advice. We are among the best equipped in the industry to help in either way.
FR: What changes do you expect to see in the second charge market over the next 12 months?
I think we will see increasing business levels as the second charge message reaches more intermediaries. The level playing field we now have, means that second charge lending has to become a serious consideration for more advisers as they seek to ensure they offer clients a full whole of market service. I am hopeful that lenders will also be encouraged to look at more ways to produce products that complement first charge lending.
We expect to see more lenders entering the market culminating in more bespoke ranges of product, lower rates along with second charge brokers offering a more standardised fee structure.
FR: What does 2016 look like for Fluent? Any exciting plans or goals you can share with us?
The future looks bright! Following inward investment at the beginning of this year, our strategy going forward is to build on our solid foundations and look to further grow our people, IT and partnership capabilities.
Central to our core business of second charge loans we will be looking to provide an additional range of new products and services … strengthening existing panel propositions and extending the product range in to complementary areas – e.g. retirement services including lifetime mortgages and credit builder services for those with impaired credit history.
Watch this space!
FR: How can networks help to support advisers and what sort of service are brokers looking for?
Ultimately, networks have the responsibility to ensure that their ARs are working in a compliant way and that is why we are seeing greater concentration by networks to appoint specialist distributors like Fluent Money.
Networks have been great ambassadors of second charge loans over the years and have allowed firms like ours to fully integrate our products alongside that of their mortgage brokers.
FR: What challenges do you feel are most affecting brokers in the current economic climate – and what opportunities are available?
With the ever increasing choice of products and services, there has never been a better time to be a broker in the lending market. The challenges posed by regulation have been largely mastered by the majority of intermediaries and although it has meant a greater burden both administratively and financially, the opportunities to help provide the right solutions to clients suggests that good brokers will prosper.
