BMPS 2026: Brokers should not give up on vanilla mortgage business
Broker business models will have to adapt along with the evolving market and borrower needs, but advisers should not ‘surrender’ vanilla cases to technology or lenders.
During a panel at Mortgage Solutions’ British Mortgage and Protection Senate, moderator Jamie Hurst, publishing director at AE3 Media, asked whether the middle of the market would be “squeezed” by technology, leaving big firms to dominate the market by leveraging relationships with lenders, while smaller, boutique firms look after more complex cases.
Mark Harrington, CEO of L&C Mortgages, said this was possible, but all that mattered was making sure the journey works for customers regardless of complexity.
Hurst asked where the value of the broker would excel once technology automated processes, and Harrington said advisers might need a different skill set as clients would be more informed when coming to firms.
He said this could separate specialist cases and business that could go straight through, but the value of advice would remain. However, the important part would be the customer knowing which route they are choosing and why.
Clare Beardmore, director of mortgage club at Legal & General (L&G), said brokers already proved their value in times of uncertainty: “I don’t think artificial intelligence (AI) could replace that. I think it will just make advisers much more efficient [in knowing] who they need to go after, but that human explanation of why they need to act in that moment was super important”.
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They will also be valued for protection and later life business, as well as cases where consumers feel they are unable to get a mortgage, Beardmore added.
However, Peter Brodnicki, CEO of Mortgage Advice Bureau (MAB), said firms should not pass on simpler business, saying: “There seems to be a little bit of a surrender going on and saying: ‘Right, vanilla stuff goes to lenders and the complex stuff goes to brokers.’
“I’m not letting a single vanilla case go anywhere.”
Beardmore agreed, saying: “We should not give up on the vanilla.”
Making technology work for the adviser
Noting that the sector should accept that automation was coming, Brodnicki said big decisions needed to be made about a firm’s technology strategy and whether to build, buy, or lease, and not all business leaders were best positioned to make such incredibly complex decisions when AI was developing so quickly.
Harrington said that as AI became more prevalent, advisers needed to be more productive to make business models and costs work. When asked how to make sure the right technology investments were made, Harrington said it was impossible to escape the potential AI had to change the market and the right decision depended on “trusting the people around you”.
“Today we have got the right people around us at L&C… It’s the confidence from a leadership perspective to make sure that everyone points in the right direction,” he added.
L&C said the firm was currently building its own CRM and had to ensure it was not solely focused on what worked for advisers, but what is best for clients too.
Harrington said: “It’s all about the adviser and the productivity, but someone’s forgotten the customer along the line. It’s all well and good to make it better for the adviser, but are we making it better for the customer?”
Reimagining business models
When asked if the current level of distribution was sustainable, Brodnicki said firms will need to review their propositions and extend their reach.
“You can’t just be a transactional business…we have to extend our business models… we have to support the whole home buying process, we have to be involved in everything that customer needs,” Brodnicki said, adding that this obviously included protection.
“I don’t think there’s any firm in this room today that doesn’t have to seriously look at its proposition and its strategy, its product, and its people,” Brodnicki said, adding that this applied to brokerages, networks, clubs and sourcing systems.
“This room will look very different in a few years’ time if we do not reinvent ourselves and make ourselves more relevant to customers,” Brodnicki noted. He added that it did not have to be scary; as long as the customer remains the entire focus, “you’ll have a great business”.
Brodnicki continued: “This is a time for decision-makers, for risk takers, that’s what you need. It’s not just about technology.”
“Intermediaries provide choice and advice,” he added, but to be relevant to all customers, “we have to consider how we facilitate direct-to-lender opportunities where appropriate, delivering choice whilst retaining advice for protection.”
Harrington said customer retention was also a challenge, as there was a “continuous battle” between aggregators, other brokers and lenders.
He said firms should engage with all new entrants to identify where the leads were coming from. “We’re all trying to get to the same end goal, but we’re all doing completely different things to get there,” Harrington said, adding that competitiveness should remain but calling for better alignment across the sector.
