The Intermediary – October 2025 - Flipbook - Page 22
RESIDENTIAL
Opinion
he vast majority of
borrowers are very
happy with their
mortgage broker. In
fact, the Financial
Conduct Authority’s
(FCA) latest Financial Lives survey
shows that 84% of borrowers spoke
positively about their adviser.
That’s not surprising. The brokers
I know spend years – decades, even –
cultivating relationships with their
customers. And those relationships
are built on trust and mutual respect.
That makes it all the more
frustrating when national media
reports try to tarnish the reputation of
advisers who work hard every day to
deliver a quality service.
One recent story I am referring to
featured a so-called ‘whistleblower’
claiming that brokers were
pushing 2-year fixes simply to earn
commission more frequently.
Forgive the outburst, but that
is absolute nonsense. Allegations
this serious need to be backed up
by evidence. But this one wasn’t.
Not at all.
All this unnamed person offered
was the vague assertion that “some
T
brokers” had admied to them
that they were currently only
recommending 2-year deals to
their customers.
If this really were a widespread
practice, the industry data would show
it. But it simply doesn’t.
According to UK Finance, in July,
44% of borrowers took 2-year fixes –
the same proportion as those opting
for 5-year deals. The last time 2-year
fixes dominated and accounted for
more than 50% of new lending was at
the end of 2017.
Given the lack of detail, we have
to assume that the anonymous
whistleblower works for a lender that
writes more 2-year business than the
industry norm. If that’s the case, then
I would wager that it has something to
do with that lender’s pricing.
Pricing of products will always
be the primary consideration for
borrowers when choosing a mortgage
product. And for the first time in three
years, 2-year fixed rates are generally
cheaper than their 5-year equivalents.
Unsurprisingly, then, 2-year fixed
rates are extremely popular at the
moment, with Moneyfacts data
showing that they made up around
ROB CLIFFORD
is chief executive
at Stonebridge
half of all mortgage product searches
last month. Consumers are asking for
them – it makes sense.
The idea that advisers are ‘pushing’
these products therefore ignores the
reality that consumer demand is
the key driver, as is lender pricing
strategy. Brokers clearly make
recommendations, but the decision
ultimately rests with the borrower.
And let’s not forget that, for the
past 18 months, borrowers have been
reading almost daily that bank base
and mortgage rates will fall. The Bank
