Networks should take a pro-active role in mortgage product design and put forward ideas to lenders, says Stroud & Swindon sales and marketing director Linda Will.
Will says smaller lenders are more receptive to the ideas of networks. Mortgage Intelligence recently launched a 4.99 per cent 20-year fixed-rate deal with Stroud & Swindon’s ITL Mortgages, allowing the borrower to redeem every five years.
Mortgage Intelligence managing director Sally Laker says the product was the network’s idea and will look to create further unique products.
Will says: “Lenders such as ourselves are looking to do more unique products and we urge brokers to come to us with a bit of out-of-the-box thinking.”
Laker says: “The ITL product brought an awful lot of enquiries from brokers to the network. It was a quirky exclusive and we wanted to bring something new to the market.”
Laker says Mortgage Intelligence will continue to look to bring new products to the market, in particular, mortgages linked to other financial products such as current accounts. Will says ITL may do a second tranche of the 20-year deal but at a slightly less competitive rate.
Pink managing director David Copland says networks will be a source of innovation but only once the lenders’ risk appetite returns. He says: “Many of our product ideas fall on deaf ears, there is just no latitude for risk right now.”