View more on these topics

Dual pricing still an issue, says Home Buyer

Sourcing system Home Buyer has warned that lenders’ dual pricing of products is still an issue.

It says by using two generic examples such as a first time buyer purchasing a property for £127,500 at 90 per cent loan to value, and a second time buyer purchasing a property for £185,000 at 73 per cent LTV, it has attempted to track the cheapest mortgage deal over two years.

Tracking the actual difference between the cheapest cost of an intermediary product and the cheapest cost of a direct-to-lender product through June and early July, shows that direct-to-lender products have been consistently cheaper than intermediary products by at least £1189 (£49.54 pcm) and at most £2002 (£83.41 pcm) over the first two years of the loan.

Samples taken in early June, late June and early July show the differentials as follows. For first time buyers the monthly savings in taking the direct-to-lender option have been £49.95, £83.41, and £63.12 respectively, with the figures for second time buyers being £49.54, £53.33, and £56.79

Managing director Richard Angliss says: “These statistics are facts, not speculation, and they support our view that the only way forward for mortgage intermediaries is to change their business models to enable them to research and recommend direct-to-lender products and to charge the customer a reasonable fee for this service, with the customer still enjoying a considerable saving.

“Feedback from mortgage adviser blogs and other sources shows that some IFAs and mortgage brokers believe that they cannot recommend direct-to-lender products because the lender will not supply a KFI. This belief is erroneous, and the FSA confirms on its website that if an adviser has the ability to produce a KFI for a direct to lender product there is nothing to stop them doing so. Our HBSLite system, designed to give advisers everything they need to sell direct-to-lender products, can produce a KFI for every mortgage product currently on offer across the entire mortgage market.”

Recommended

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. nice article.
    ____________
    Ashish

    Mortgage Loans

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