Purely Mortgages chief executive Mark Chilton says Nationwide has told him it will not be taking on any more new direct intermediaries as it prepares for M-Day despite being in talks with them since June.
The move would effectively stop smaller brokers from being able to pass any business with Nationwide and cuts out intermediaries who want to take the whole-of-market route.
But Nationwide says it has no such policy, conflicting with the advice that Chilton says he was given in what he describes as “abrupt terms” by a local business development manager.
The building society does admit to promoting an alternative route to smaller intermediaries. Nationwide press officer Joe Wiggins says: “We are taking on new registrations. What I can say is that we are encouraging smaller intermediaries to go through networks and clubs. In terms of preparations for M-Day, it is business as usual for us.”
After talks with Nationwide's head of intermediary development in June, Chilton was under the firm impression that he had made a deal with Nationwide.
But two weeks ago, he says he was told by a local business development manager that Purely Mortgages had missed the opportunity to register its intermediaries with the society.
Nationwide says Purely Mortgages' current options are to place business via a local branch but at procuration fees restricted to £125 or as a compromise go through the sister company Chase de Vere, which it says would be inefficient. Chilton says there was no indication in June of any cut-off date for placing intermediaries with Nationwide.
Chilton says: “Why ref-use market access to people who are potentially a huge market force? We are hav-ing to compromise but the options are not particularly logical.”
Mortgage View, p32