View more on these topics

I was thanked by the lender that undercut me

I recently received an email from Woolwich thanking me for some recent cases which I have submitted to them. I quote: “We wanted to take this opportunity to thank you for your business over the last six months, an unprecedented period for all of us continuing to trade in the mortgage market.”

It later went on: “Providing customers and brokers with good value today and food value tomorrow. Woolwich’s signature lifetime tracker and offset products provide consumers and intermediaries alike with confidence that their clients will have a good deal for the life of the mortgage.”

All very upbeat.

I am well aware of the benefits of their lifetime tracker mortgage, this is why I have recommended it recently to a number of clients. Unfortunately though, Woolwich are continuing to maintain the same product with marginally better terms through their direct channels. The direct product offers no early repayment charge whereas ours has a 1 per cent tie-in during the first three years.

The last two cases that I submitted and spent money on processing – which were actually offered – have since been attracted by the no-penalty deal. They wanted to deal through me but as I could not provide the deal, they reapplied through the local branch.

I have been undercut by the company that I have recommended and for a minimal difference in terms. So, thanks Woolwich for thanking me for the cases you have since taken from me.

Do Woolwich actually realise the effect that having this marginal difference is making and how it is alienating the introducers? Judging by their upbeat email, I really do not think so. They may think that by having such a small difference, they are keeping us happy and on the back-burner but, in effect, it is even more infuriating as there seems to be no reason for it.

It cannot be reducing their pipeline so why don’t they just bite the bullet and offer us the same products? Then both intermediaries and clients will be really happy.

Claire Cook

Director

Talk Money

Hove, East Sussex

Recommended

Broker Talkback

Should IFAs be selling large quantities of with-profits bonds in the current market?No 100%No “IFAs should be doing what is right for the client. We do not sell with-profits bonds anymore. We think that they are not transparent enough.”Robert Wood, Money Matters No “They are opaque and it is often difficult to understand what the […]

Naturally resourceful

Phew, what a few weeks we have had in the markets. The sector rotation has been violent, with individual stocks either tanking or soaring.

Telly Vision

It is easy to follow the herd. After all, the dot.com boom was evidence of how hype can overcome reality. The internet has enabled much in the world of communication but it has also destroyed or held back the development of alternatives seen as no longer necessary.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment