Curran, the former head of distribution at Bank of Scotland who was appointed last week, says Lloyds will use its four intermediary brands to aim to retain its market share of around one-third of mortgage lending.
He says: “Intermediaries remain a key part of our mortgage distribution. In the next 12 to 18 months, we think some elasticity will return to the sector and we will need the intermediary side of things there to cope. They will be a fundamental part of our plans when the market returns.”
Curran applauded advisers for continuing to control 64 per cent of UK distribution, according to the latest Council of Mortgage Lenders figures. He says: “It is a figure that will encourage intermediaries and will give them confidence.”
He says Lloyds will not favour the bigger distribution channels that are being formed through market consolidation.
He says: “As distributors become fewer, bigger and stronger, it just provides its own challenges and opportunities for us. But we will not prefer the bigger ones, we will continue to control our distribution volumes through the product mix and the brand positioning rather than through select tranches.”
PMS development director Martin Reynolds says there needs to be a mix of mortgage distributors as much as there needs to be a good mix of lenders. He says: “Too few large distributors would create a power vacuum and that would not be healthy for the sector.”
Bestinvest mortgage adviser Peter O’Donovan says: “The likes of Abbey and Woolwich prefer exclusive products or tranches so they would tend towards the bigger clubs and distributors but Lloyds’ brands do not.”