Former AMI chief says lenders are investing heavily in tech to attract more direct business
Lenders will likely expand their direct business and compete for a larger share of the market in the coming years, the former chief executive of the Association of Mortgage Intermediaries (AMI) has warned brokers.
Speaking at Stonebridge’s recent annual conference, Robert Sinclair (pictured), in his final address as AMI CEO, outlined opportunities for brokers while cautioning against complacency.
“If I’m a lender, particularly if I’m a lender that may have an overseas parent which normally does everything direct, I’m asking myself: why would I want to play in a market where I have to pay for 91% of the business I get through the door?” he said.
He pointed to falling interest rates, tighter margins, rising regulatory costs, and ongoing technology investments as key factors pushing lenders to streamline their processes. The increasing use of automated product transfers (PTs) could reduce broker involvement in remortgages, he noted.
According to the Intermediary Mortgage Lenders Association, brokers facilitated 87% of all UK mortgages in 2024, with projections suggesting this will rise to 91% by 2026. Despite this growth, Sinclair stressed that lenders are investing heavily in technology to attract more direct business.
“The desire to automate as much as possible through few-click PTs is anathema to me in a world of 30- to 35-year mortgages, which are taken out at an average age of 35. That can’t be right that there isn’t some form of review to ensure that suitability is right,” said Sinclair, who announced his retirement last year.
While he acknowledged that many lender representatives support brokers, he urged intermediaries to recognise that strategic decisions at the top level may not always prioritise intermediated distribution. “That’s why brokers have to continue to demonstrate our value and worth to them,” he added.
Sinclair encouraged brokers to capitalise on what he described as a rare remortgage opportunity in 2025. UK Finance data indicates that 1.8 million mortgages will reach the end of their current terms this year, with total lending — across purchases, remortgages, and PTs — expected to exceed £500 billion.
“The remortgage opportunity this year is huge,” he said. “There are more mortgages coming to an end this year than any other year for a while. A £500 billion market is enough to keep everybody busy.”
However, Sinclair cautioned brokers against assuming that business will automatically come their way. “If I ask the biggest lenders what percentage of PTs come back from the same broker, it’s a lot less than 50%. So, some intermediaries simply aren’t managing their customers very well.”
Looking ahead, Sinclair remained optimistic about market prospects. “2025 looks good to me, because of great opportunities – and you choose what that opportunity is,” he said. He encouraged brokers to take advantage of growth and diversification options available within networks.
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