Brexit overtakes robo-advice as biggest broker threat

Brexit overtakes robo-advice as biggest broker threat

Technology and robo-advice have been overtaken by Brexit as the greatest challenge faced by mortgage brokers, according to Legal & General research. 

Surveying brokers at its recent autumn conference, Legal & General Mortgage Club found the proportion who cited technology and robo-advice as their biggest challenge over the next three years had dropped to 21 per cent - a decline of 28 per cent on last year’s figure.

Brexit was now seen as the biggest concern, with 25 per cent of brokers surveyed agreeing this posed the most substantial challenge.

But Legal & General reported brokers were largely confident about business and the wider mortgage market with 28 per cent expecting gross lending to reach £270bn in 2019.

Calls for lenders to improve propositions were clear, with 49 per cent of brokers citing a need for better service and technology.

Kevin Roberts, director at Legal & General Mortgage Club, said technology clearly was not the threat brokers once thought it was.

He said: "Instead, these figures suggest advisers are embracing the role that technology can play in the mortgage application process and are recognising the importance of fintech to future proofing their businesses."

Mr Roberts said technology was essential to the future of the intermediary mortgage market.

He said: "The recognition by brokers of the role tech can play in the mortgage lending process is just the first step.

"As an industry, we now need to work together to make the frictionless mortgage a reality for customers, as well as helping brokers recognise the importance of fintech.

"If we do not, outdated processes and inefficiencies could still leave us all at risk from outside competition and disruptors."