Marketplace lender Zagga has highlighted growing lending complexity as a factor that can enhance the value of proposition of mortgage brokers for consumers, especially those in the sub-prime mortgage space.
In short, intermediaries are key to problem solving for potential borrowers trying to find a solution amidst more complex lending products, the firm said in a recent whitepaper,
Reshaping the lending landscape: How are today’s trends affecting tomorrow’s market?
With major banks tightening credit and alternative lenders increasing market share, brokers are “working harder than ever”.
“The lending market is increasingly complex, therefore, experts who can help their clients navigate this space will continue to succeed,” Zagga CEO Alan Greenstein said.
As with other sectors facing disruption, it was up to brokers to look at their business cases and processes to determine they are sustainable and meet market needs, he told
Australian Broker.
Current day disruption has broadened the available lending pool from traditional major and non-major banks to a wider selection of alternative lenders, he said.
“Brokers who build relationships with these players, understand the differences with each, and then match their clients’ requirements with the funder/s who can best meet them, will give their clients what they want – a lending solution, to meet their needs, quickly and efficiently.”
Brokers who remain abreast of changes in areas such as construction or SME lending will be in more of a position to match their clients with the right lender.
“Having more players does not make the product more complex, but offers a wider choice – the key being to know which lender best suits the needs of the borrower. Brokers who get that right obviously will have the ability to meet their clients’ needs quickly and effectively, and that means success.”
Greenstein said that more brokers have been approaching Zagga as an alternative to the banks which have been seen to fail certain clients.
“Whilst we readily acknowledge that we cannot be all things to all people, we are looking to partner with selected brokers, where their client bases and our investor risk appetites can be matched to offer an effective solution to both borrower and investor,” he said.
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