View more on these topics

Brokers urge Co-op to adopt C&G’s underwriting approach

Brokers are hoping the Co-operative Bank will adopt the flexible underwriting approach that Cheltenham & Gloucester was well known for after the mutual’s parent group sealed a deal to buy 632 Lloyds branches.

This week, the Co-operative Group announced it will pay an initial £350m for the Project Verde branches and up to £400m based on the performance of Co-op’s combined banking business until 2027.

The deal will see Co-op take over the Lloyds TSB and C&G brands by November 2013. Lloyds will rebrand all 632 branches as TSB in the third quarter of 2013.

Brokers want Co-op to adopt the flexible underwriting approach C&G used before Lloyds moved to a more homogenised approach across its brands.

Lentune Mortgage Consultancy director Stuart Gregory says: “One of the key strengths of C&G’s lending was it was common sense lending, it was individually underwritten. If Co-op moved to that type of approach, it could make great strides in the market and borrowers would benefit.”

London & Country associate director of communications David Hollingworth says: “C&G used to have a flexible approach to underwriting and if you go far enough back, individual branches used to have mandates to approve cases, which was very good.”

However, some brokers believe Co-op could loosen its existing ties with the broker market because of a desire to get customers into its branches. Co-op does have an intermediary brand, Platform, but it does most of its lending in the buy-to-let sector, although it has a small selection of mainstream and near-prime products.

Coreco director Andrew Montlake says: “I think Co-op is less likely to use brokers now that it has a big branch network to service, which is a shame.”

A Co-op spokesman says: “It is too early to say how the deal will impact on our mortgage lending.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I can think of many cases where i have asked the bank to change their lending criteria and they have – NOT.

    C&G Do not deal with Brokers, so why rant on wanting the criteria changed!!

  2. I can say that having worked for C&G while the flexible criteria was available, this only caused more work for the branch.

    Each and every broker insisted on a change to the policy to benefit each client. This sounds great from a customer point of view with a nice personal service but is a nightmare for the staff in a branch.

    Better to have a standard approach so as to ensure everyone is treated fairly.

  3. I fear the worst with the Co-0p taking over the TSB.
    The CIS has closed because there management could not run a piss up in a brewery!
    Will the bank be any different?

  4. What a brilliant idea Mark. Turn the branches into pubs! Well it worked for Wetherspoons!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com