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Big lenders attacked on direct deals

Mortgage brokers have hit out at Halifax, Nationwide and Cheltenham & Gloucester for offering substantially better rates through direct channels.

Halifax is offering its three-year fixed-rate homemover mortgage to direct customers at 5.74 per cent up to 75 per cent LTV. It is available at 6.22 per cent through brokers.

A three-year fix is offered at 5.54 per cent through C&G’s branches while the intermediary rate of 5.89 per cent.

Nationwide has a three-year direct deal at 5.75 per cent but is not offering an equivalent deal to brokers.

Abbey has one direct product priced lower than through intermediaries – a two-year fixed rate at 5.49 per cent – after it changed several direct deals this week to make them equivalent to broker deals.

Hamptons managing director Jonathan Cornell says his firm has had to tell many clients that they will find a better deal if they go direct.

He says: “When differences between products can be as much as 0.3 or 0.4 basis points, we have to point some clients towards lenders’ branches.”

A C&G spokeswoman says: “Differential pricing has been a feature of the mortgage market for many years but, as a result of market conditions, the differential has shifted.”

A Halifax spokesman says: “Halifax remains committed to the broker channel and believes that the vast majority of consumers prefer the choice, advice and service of a broker.”

An Abbey spokesman says: “Sadly, the current market does not allow us to offer intermediaries the same price advantages across the whole of our mortgage range.”

A Nationwide spokeswoman says: “As a mutual, it is important that we offer our members good deals.”

Three-year fixed-rate mortgage deals

Direct Broker Cheltenham & Gloucester 5.54% (£995 fee) 5.89% (£995 fee)

Halifax 5.74% (£999 fee) 6.22% (£999 fee)

Nationwide 5.75% (£599 fee) N/A

All at 75% loan to value

Reader comments (1)

I am sure you have had many comments back, but from the IFAs we are personally gathering together to make a stand, I think I can speak for all of them by responding as follows:
A Halifax spokesman says: “Halifax remains committed to the broker channel and believes that the vast majority of consumers prefer the choice, advice and service of a broker.”
Exactly the reason why they should offer competitive deals through brokers.

Claire Cook Talkmoney


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