Mortgage brokers missing out on £35m procurement fee income per year

Mortgage brokers are losing out on more than £35m worth of procurement fee income each year as a result of missing out on the best affordability options for their clients.

Research from Mortgage Broker Tools (MBT), based on cases processed through the platform as well as industry data, indicated this is because brokers are not researching enough lenders.

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 £200,000, and an average procurement fee of 0.4%, MBT stated that brokers are potentially missing out on £35.6m of additional procurement fee income that they could be earning each year, from placing cases where they are currently unable to find a suitable affordability match.

MBT CEO, Tanya Toumadj, said that “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,” Toumadj highlighted. “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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