Mortgage advisors will continue to play a pivotal role in the market despite one report apparently predicting that advisors will go out of business over the next year, an industry figure has stated.
Sir James Crosby conducted a recent investigation into the mortgage sector and he painted a bleak image of the future for intermediary companies. He stated that the decrease of clients could lead to many mortgage advisors disappearing from the mortgage marketplace in the near future.
The Head of Regulation at the ifs School of Finance, Mark Roberts, however, had a different story to tell as he believes that this current turmoil in the mortgage market has positive implications for many mortgage advisors as their knowledge and advice is even more crucial than previously, primarily because customers are implicitly more aware than ever of the importance of finding the right deal for their present circumstances.
Figures from the AMI (Association of Mortgage Intermediaries) back Mr Roberts explanation as their figures show that the number of first-time buyers who consult mortgage advisors prior to their purchase has increased by approximately ten per cent in 2008 when compared to the 2007 figures.
Mr Roberts stated:
“With consumers finding it increasingly difficult to obtain mortgage finance, they are inevitably seeking professional help and there is no reason to believe this is likely to change.”
The ifs School of Finance provides financial education worldwide, to both consumers and professionals, which includes setting the CeMAP syllabus and exams, and is a registered charity incorporated by the Royal Charter.