Q&A with Rob Sinclair: Insights from a Leading Voice in the UK Mortgage Industry
Having worked tirelessly on behalf of brokers in his role as the Chief Executive of the Association of Mortgage Intermediaries, Rob Sinclair is one of the most recognisable faces and voices in the UK mortgage industry today. Vocal on all issues facing brokers in the market today, his career started on the lending side, which he believes stood him in good stead when trying to resolve some of the issues facing the broader mortgage community.
Rob began his career in 1978 at Midland Bank in Hartlepool as a graduate, where he was one of a handful who worked on the GAP analysis for the merger with HSBC. He also gained experience there as a branch manager and, more recently, in the Private Banking division before joining Santander's investment arm, Inscape, in 2000. Six years later, he joined AIFA, and in 2012, AMI, where he became a passionate defender of financial advice. He is also a non-executive Director of the Darlington Building Society.
By his own admission, he is an avid follower of all sports that involve ball watching - a keen eye for which is essential in his day job that, he admits, involves a lot of ball juggling.
What keeps you busy at the moment?
Consumer Duty is keeping everyone busy. As an industry, we are making good progress, but there is still a lot to do. The old hand-off points are going to evolve, and some practices are going to have to change, not least product transfers. How can it always be the best outcome to simply stay where you are without examining the broader market? Questions like these will get resolved as we work our way through Consumer Duty.
Then we have the ramifications of the Mortgage Charter. Advice will be crucial in forbearance discussions with borrowers, as many will not understand, or want to understand, the implications of deferring mortgage debt. We know with hindsight that many people took the 3 months "no questions asked" payment holiday as a safety net rather than because they actually needed it. This has some way to play out.
What market segments do you think need further support?
I think this is one of the most challenging economic environments we have seen since 2007, and the impact is being felt across every sector of the housing market. However, at the moment new build in particular is under considerable strain. This is why it's so important lenders like Newcastle continue to support the market with initiatives to help provide more options to borrowers. Of course, we need policy support this but schemes like First Homes and Deposit Unlock as well as support for higher LTV lending are really important if we are to support brokers and their clients.
Do you foresee any particular issues for distributors?
I suppose I do worry that we may have a little complacency about Consumer Duty, particularly among those firms that think they are doing well enough but also believe they are too small to bother the regulator and can sail under the radar.
There are challenges and costs for directly authorised brokers, of course, but also for networks with big appointed representative distributors. How will networks manage some of the biggest firms who may push back on some reforms to current practices? These are all elements we are working hard to understand.
But, for me, one area of concern remains Lifetime Mortgage. Ultimately, I still think advice in this market is too isolated from other considerations. We know the regulator is concerned, and as the market grows, the future almost certainly spells reform.
What does the future of advice look like?
There is a huge potential for the use of machine learning in the financial services industry. That is not to say that people will turn their back on advice - I don't believe that for one second. But we need to recognise that the process will become slicker over time. Younger people will expect house-buying to work more like everything else in life, so, in effect, it becomes more like a re-mortgage. Technology will enable broker firms and lenders to spot likely client's months in advance of their decision to act so the right conversations and product offers can happen earlier.
Brokers will also be able and expected to offer better product performance reviews and, therefore, outcomes over the life of the loan and will look at ongoing performance - not just changing at the end of a particular product period.
Finally, I think we need to move to a model that treats advice as less product-based and more holistically because the best consumer outcomes lie in the ability to deal with a life problem with all the financial tools in the tool bag. I see it as more akin to the way a GP surgery model operates where many specialists operate under one umbrella of general care. It will mean more partnerships and without a doubt bring significant challenges around remuneration, but it will have to evolve if we are serious about outcomes.
And for you?
The mortgage distribution value chain is fragmented and empathy is sometimes lacking. Lenders often do not know what it is like to run a cash-flow driven business (mortgage products pay for years after the initial transaction) and brokers very often do not understand the different funding constraints that lenders face. My job is to navigate a path between regulators, brokers and lenders that enables them to work better together and deliver better outcomes for borrowers and I shall continue to work hard to do exactly that.
Contact us
Talk to your dedicated Business Development Manager or contact your Intermediary Support Team at Intermediary.lending@newcastle.co.uk or 0345 602 2338.