Jessica Darnbrough
Financial planners have cottoned on to the value of mortgage books and the opportunity to cross sell to a client base according to Advantedge.
Speaking to The Adviser, Advantedge’s head of financial solutions Craig Saville said financial planners were now the biggest buyers of mortgage books.
“If you apply a commonsense approach, it is cheaper for financial planners to buy a mortgage book than a financial planning book,” he said.
“In addition to this, by buying a mortgage book, financial planners are getting access to younger clients that they can they cross sell financial planning products to.”
As such, Mr Saville said brokers that do not attempt to diversify their business could fall behind and be beaten by financial planners that can promote themselves as a one stop financial shop.
“Gone are the days when brokers could rely on one income stream. Today, in this highly competitive environment, brokers really need to have at least two other financial streams to rely on,” he said.
