£35m in broker income being lost from lack of affordability research

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Mortgage advisers are missing out on more than £35m worth of procuration fee income each year as a result of missing out on the best affordability options for their clients because they don’t research enough lenders.

This is according to analysis by Mortgage Broker Tools (MBT), based on real cases processed through the platform, coupled with industry data.

MBT found that brokers are missing out on placing 3,712 cases a month because they rarely use an affordability calculator from a non-top 10 lender. At an average loan size of £200k, according to MBT data, and an average proc fee of 0.4%, it means brokers are potentially missing out on £35.6m of additional proc fee income that they could be earning each year from placing cases where they are currently unable to find a suitable affordability match.

Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “Old habits are costing brokers money. We know that nearly six in 10 brokers rarely look outside of the top 10 when it comes to identifying a lender that can meet their clients’ loan size requirements, yet one in 10 cases don’t have an appropriate affordability match from the top 10 lenders. These may seem like small percentages at first, but they add up to big numbers in lost revenue.

“A platform like MBT Affordability can help protect brokers from missing out on this income as it enables them to easily research affordability results from more than 60 lenders, as well as criteria research from more than 100. It means that finding the right mortgage for a client can be just a click away and this can help brokers to earn more happy clients, and more income.”

 

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