Royal Bank of Scotland has admitted its intermediary mortgage business comes second to branch-based sales.
In reporting its interim results for the first half of 2006, the banking giant, which saw average mortgage balances grow by 10 per cent over the comparable period last year, partly as a result of strong growth from First Active, claims it has concentrated on its direct channel because of the more attractive rewards available.
Only last February, RBS launched RBS Intermediary Partners to help improve its broker-based sales.
The company says: “In the first half of 2006 we focused primarily on our branch channels, and our offset mortgage product again performed strongly.
“Intermediaries are an important distribution channel for mortgage products in the UK and we are an active participant in this channel, although there can be significant swings in volumes based on competitive pricing.
“In the first half of 2006 we stepped back from this market since, at the prevailing pricing, we considered the risk-reward equation unattractive relative to other opportunities.”