John Charcol senior technical manager Ray Boulger warns that lenders could damage their long-term relationships with brokers after Woolwich confirmed it will no longer be accepting new introducers.
Woolwich says it has taken this “short-term measure” in a bid to manage business flow. A spokesman says: “We have been inundated with business over the last three to four months. We are trying to be sensible about trying to manage the flow of business and looking after our existing customers.
“If anyone moves from one broker to another, then they will be able to re-register.”
Boulger says lenders have got to be careful of making such decisions.
He says: “This situation will not last for ever and it could come back to haunt them in the longer term.”
Boulger says lenders are looking closely at who they want to work with in the current environment.
He says: “The whole question mark of mortgage clubs has been raised as lenders cannot control who they deal with. Previously, the huge benefit of clubs was the volume they offer but now from a lender perspective it loses them some control.”