Silence is deafening from brokers’ allies
Posted on October 31st 2011
I am sure readers must have seen HSBC’s statement recently about how 81% of the best mortgage deals have been done direct over the last year, but what the statement lacked was any balance so it was more akin to an advertisement.
First, it sought to discount an intermediary deal that appeared high up the rankings by making a negative remark about it. HSBC’s press release also ignored the fact that customers who go direct are offered the most biased non-advised sales process that is permitted by our regulatory regime. In other words, they are only offered the products of that one company.
While the mortgage itself looks cheap, it is often included within a bundle of poor value insurance products. And if the customer’s application is rejected, they are shown the door as the lender has no other products to offer.
If the customer were to repeat this process with four or five lenders, they would have to take a couple of days off work. If consumers want advice on a whole-of-market basis they would be better off talking to a broker, especially if they do not fit the mould of the perfect borrower.
Incidentally, I haven’t seen many counter-arguments coming from the high street lenders that are allegedly pro-mortgage brokers. In fact, the silence is deafening.
Our roadshows start in a few weeks and we are taking action to ensure customers get a balanced argument. Make sure you support it by booking your space soon.
