Nearly two thirds of brokers plan to recommend non-bank products over the coming quarter, the latest Mortgage Business Sentiment Survey has revealed.
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.
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.
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