Radar Results principal John Birt said the past 12 months has seen an increased demand from mortgage businesses looking to increase the number of loan books they carry.
Mr Birt explained that the main reason for this increased demand is the opportunity for the business to “cross-sell” and direct clients into other services, including financial advice.
This, he suggested, was one of the main reasons Mortgage Choice expanded into financial planning in 2014, having realised a client they obtained through the purchasing of loan books could be an “ideal financial planning client”.
Mortgage businesses are also directing new clients to other service areas, including life insurance advice, general insurance, accounting and property sales, Mr Birt said.
Currently, many businesses that intend to purchase additional loan books are looking not just within the aggregator through which they operate, he added.
“Most of our buyers who are looking for a loan book would prefer to buy within their own aggregator, whether it’s AFG, FAST, PLAN, Connective or Vow [Financial],” Mr Birt said.
“But we have had requests from our buyers to acquire loan books which are not even with their own aggregator,” he said.
