Cornell accuses HSBC of sparking dual-pricing
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HSBC’s deals provoked the extremes of dual-pricing among intermediary lenders, says First Action Finance head of communications Jonathan Cornell.
At the Mortgage Business Expo, Cornell said if HSBC had not been pricing so aggressively, then other lenders perhaps would not have felt the need to follow their lead.
He said: “HSBC is probably causing the worst of dual-pricing. As it does not deal with intermediaries on a constant basis, it needs to price particularly aggressively to meet its market share, it is trying to get about 10 per cent or so.
“If it was not for HSBC, the others would not have to compete so hard but to maintain good flow and keep branch adv- isers busy, the other lenders have to follow suit. We are very unhappy about dual-pricing but we have had the lion’s share of it over the past decade.
“A couple of lenders, Nationwide and Woolwich, deserve credit for not dual-pricing. The mortgage market review has necess- arily clarified many of the issues that surround dual-pricing that is something we should push more for the FSA to look at.”
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