A decade on from the financial crisis - what's changed?

Perhaps the biggest change to hit our industry has been regulation. New rules under the Mortgage Market Review and the Mortgage Credit Directive, together with increased scrutiny from the Bank of England and the Prudential Regulation Authority have meant lenders and brokers alike are operating within a new remit and as a result we’re seeing better practises across the market. Funding and Capital adequacy rules are now much more stringent meaning banks are better capitalised and better prepared to weather bigger storms.

Undoubtedly more brokers have embraced cross selling in order to protect themselves from relying solely on mortgages. Networks in particular have been pushing life sales. It’s a development that is certainly understandable. The downturn hit the mortgage industry hard and many brokers who relied solely on mortgage business were forced out of business. It’s a mistake few are willing to make again.

As a result of the reduction in brokers there is more business for the ones that remain - one could argue too much as the broker recruitment crisis rumbles on. And of course brokers’ share of the total market at over 70% is far higher than at any other time in history. Lenders have pulled back from direct lending somewhat, branches have been closed and some have opted out of offering advice. The worth of the broker is being recognised.

And perhaps the biggest ‘improvement’ we’ve seen since those dark days of 2007 is that consumer awareness of financial services has increased significantly. Yes, this means there is a lot of mistrust of bankers (and bonuses) but it also means people are more savvy when it comes to their own finances and that can only be a good thing.