Brokers say new bank TSB should ensure rate parity and focus on efficient service when it launches its broker arm next year.
Lloyds Banking Group has created a new bank from the 631 branches it was forced to dispose of by the European Commission as part of the bank receiving state aid in 2008. The branches were rebranded as TSB last week, with Lloyds TSB operating under the separate Lloyds Bank brand.
TSB will initially carry out mortgage business through its branches but a spokeswoman says TSB plans to distribute mortgages through brokers in 2014.
Lloyds TSB mortgage customers have been split between the new banks based on which branch they took out their mortgage with. Higher-risk borrowers have remained with Lloyds Bank to ensure TSB has a back book at least as strong as Lloyds’.
Trinity Financial product and communications manager Aaron Strutt says: “It is important that when TSB launches through brokers it makes its direct rates available to brokers. Historically brokers had access to direct rates from Cheltenham & Gloucester and Lloyds TSB so I think it is key for TSB to offer this as well.”
Mortgage Centre IFA director Fahim Antonaides says: “If you ask any broker what the most important aspect of a lender’s proposition is, the majority will say service. Rates are fairly competitive across the board and brokers are happy to ride the peaks and troughs associated with market rates.
“However, the most successful lenders are those who offer clear decision-making and a speedy back office service. A quick no is just as important as a quick yes.”
London & Country associate director of communications David Hollingworth says: “Expecting TSB to have a stand-alone broker option from launch would have been unrealistic but the positive here is their stated intention to launch into that market.”