The Mortgage Business is temporarily withdrawing its products from the market to catch up with business already on its book waiting to be processed.
TMB closed to new business from July 2 and expects to be open again in approximately six weeks.
As revealed in Money Marketing in April, the HBOSowned lender repriced products to reduce demand but application levels stayed strong.
Freedom Finance managing director Colin Snowdon suggests HBOS has closed TMB to deliberately reduce its market share. He says the move is a “Draconian” way to address the issue and it will leave brokers high and dry.
Mortgageforce managing director Rob Clifford says it is a brave move but brokers who do a lot of self-cert business will be irritated by it.
Snowdon says: “It's inev-itable that if they are out of the market for six weeks, introducers, brokers and packagers will be very aggrieved and they might find it difficult to come back into the market. Getting rid of a brand might be a way of HBOS solving the problem of market share.”
TMB marketing & sales director Mark Bergin says: “Service is at the forefront of our organisation but in the last 12 months, service levels have not been what they should be.”