Legal & General's mortgage club has dropped Abbey from its panel of lenders.
PR manager Peter Timberlake says L&G regularly reviews the lenders on its mortgage panel and reveals that part of the reason that Abbey was dropped was because it did not work extensively with Legal & General on exclusive products and other services and benefits for members.
Abbey is disappointed but says it is keen to continue its relationship with the 1,670 appointed representative and 2,178 IFA mortgage club members registered with it.
It is writing to them to set out new procedures it hopes will preserve the competitive terms available through the L&G club.
Timberlake says: “Abbey will not be on L&G's panel from March 1. Abbey has not delivered exclusives to our club members and this forms part of the reason for our decision.”
Hill Martin mortgage executive Steve Smith says: “Maybe Abbey was less interested in specific products and more interested in the club as an access route.”
Abbey media relations manager Christine McAllister says: “We are disappointed that the executive management at L&G has decided to remove Abbey from its panel, especially at this critical point in the lead-up to regulation of the market.
“Our priority now is to protect and build on the valuable relationships we have built up with both IFAs and the appointed representatives of L&G.”