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Brokers stick with the old school of lenders

Long-established lenders chosen despite newcomers providing more product satisfaction

Intermediaries continue to rely on traditional, long-established lenders despite the range of new lenders and packagers available, according to Henry Samuels Marketing Services.

The firm’s research shows that mortgage intermediaries are more likely to use Abbey, Halifax, Nationwide or Northern Rock despite the fact that niche players such as GMAC and Mortgage Express offer more product satisfaction.

Halifax is mainly used by 32 per cent of the 300 respondents, making it the second most popular provider, but it gets the second-lowest satisfac- tion score of the top 10 lenders listed. The research, called, Mortgage Intermediaries, One Year After Mortgage Regulation, shows that 39 per cent mainly use Abbey followed by 32 per cent using Halifax and 23 per cent mainly using Northern Rock and Nationwide.

Mortgage Express, Northern Rock’s closest rival in the equ-ity-release and buy-to-let market is only used by 5 per cent of respondents but gets a product satisfaction mean rating of 1.31 compared with Northern Rock’s score of 1.17.

Nationwide gets the highest product satisfaction score of 1.54 while Birmingham Midshires gets the lowest score of 1.14, with 10 per cent of mortgage intermediaries saying it is the lender they mainly use.

HSMS director Henry Sam-uels says: “Our research indicates that the regulatory chan-ges have encouraged caution among many mortgage intermediaries. Abbey, Halifax and Northern Rock are among the most recommended but their products are not as highly rated as Nationwide or even the less recommended GMAC and Mortgage Express.”

John Charcol senior technical manager Ray Boulger says: “It does seem odd for there to be such a wide divergence. If brokers are not happy with the products, you have to ask, why are they doing business with these lenders?”

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