The letter said lenders were not acting irresponsibly by pulling products at short notice but were looking after their own liquidity positions as consumers rushed to claim the best deals. It went as far as suggesting in certain situations it understood a lender’s need to promote deals more cheaply in branch networks.
But it appears that some lenders are now trying to take advantage of the goodwill and good intentions. This week, we reveal the startling differences starting to surface in rates available on direct business compared with through a broker.
Big names such as Cheltenham & Gloucester, Abbey and Halifax are all offering inflated rates on lending through brokers. Others simply are not offering business through intermediaries.
These moves are effectively pricing brokers out of the market.
Intermediaries are in the position of having to tell clients in many situations they can get better deals elsewhere. This situation is not sustainable.
The intentions behind the letter were to highlight the fact that brokers and lenders are interdependent and they need to work together. A strong and vibrant intermediary sector is vital for future prospects of many of the lenders who are shutting the door to brokers. They are playing a dangerous game.