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Tough mortgage market conditions have led Australian mortgage brokers to diversify their businesses and UK brokers appear to have followed suit.
According to independent research released by Datamonitor today, mortgage “intermediaries” (brokers) are increasingly looking to diversify into new fields.
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Three quarters of the survey’s respondents said they were maximising cross-selling opportunities in order to compensate for lost income in other areas of their business.
General insurance was one of the most popular new products but some respondents said they were even considering cross-selling electricity and gas to make up for the shortfall in mortgage business.
“Despite the government’s efforts to get banks lending again, lending levels remain low and so intermediaries need to find different avenues in order to survive the downturn,” Rod Logan, Datamonitor financial services analyst said.
According to a straw poll conducted by Mortgage Business in May 2008 nearly 86 per cent of Australian mortgage brokers are considering or have already diversified their businesses.
