Brokers are divided over Lloyds Banking Group’s decision to close Cheltenham & Gloucester for Intermediaries.
Last week, advisers were notified via email that C&G will not accept mortgage applications for new and existing customers from April 1.
C&G mortgages will continue to be available direct through the branch network and by telephone.
There will be 570 job losses as a result of the closure, taking the total job losses to 26,770 since the integration of Lloyds TSB and HBOS in 2008.
Coreco director Andrew Montlake says: “Because C&G has been slightly off the boil for a while it is not going to have a massive effect for the majority of brokers.
“As brokers we need to get on with the job and use all the tools we have available.”
Fitzgerald says: “I am surprised but C&G’s intermediary business was not that great of late. Have brokers used C&G a lot over the past three months? The answer from our perspective is no and I am sure if you ask others they will give the same answer.”
However, Chadney Bulgin mortgage partner Jonathan Clark says the move is bad news for brokers.
He says: “C&G was still quite an intermediary force and the problem is it will remain on the high street. It is another mainstream lender we now cannot deal with.”
The move will see three intermediary mortgage brands remain at Lloyds. Halifax for Intermediaries will become the mainstream brand, BM Solutions will deal with buy-to-let mortgages and Scottish Widows Bank will offer more niche mortgages.