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Nearly two thirds of brokers plan to recommend non-bank products over the coming quarter, the latest Mortgage Business Sentiment Survey has revealed.
document.addEventListener('DOMContentLoaded', (event) => { window.dataLayer = window.dataLayer || []; dataLayer.push({ 'event': 'articleTags', 'article_tags': ['Breaking News'] }); });According to the Q1 2009 survey, conducted in late February, 66 per cent of the 651 respondents said they intend to offer non-bank products in the coming period.
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Brokers are becoming increasingly incensed by poor bank servicing times which have blown out to more than three weeks in some cases, and the strong sentiment shift to the non-bank sector may be a reflection of broker frustration.
While the 66 per cent swing is unlikely to translate directly into business written for the non-bank sector, it is a further indication that brokers are looking for alternatives to the banks.
Peter Bromley, general manager of LJ Hooker Financial Services, said that while he’d not seen a trend towards non-banks, the breakdown in servicing levels were a major criticism of the majors right now and secondary lenders have an opportunity to offer brokers a more compelling offer.
“Once the credit markets open non-bank players are obviously going to be a viable option for brokers. Brokers want to spread their business and they want to offer borrowers a good range of competitive products.”
To view the Mortgage Business Q1 2009 Sentiment Survey in full click here.
