C&G pulls from broker market

17 March 2011 | By Natalie Thomas

Cheltenham & Gloucester, part of Lloyds Banking Group, is to no longer accept mortgage applications from mortgage brokers.

With effect from midnight on March 31 2011, C&G for Intermediaries will no longer be accepting mortgage applications for both new and existing customers.

Any new intermediary applications must be received in full before midnight on March 31 in order to be processed.

C&G mortgages will still remain available to customers on a direct basis.

Lloyds Banking Group has announced today that it is cutting 570 jobs across the group, some of which will come from the C&G sales team.

In an email to brokers today, Peter Curran, head of intermediary distribution at Lloyds Banking Group, says: “There will be no impact on your clients’ existing mortgages or on any applications already submitted.

“Customers can continue to manage their accounts through our branch network and by telephone. We are writing to all customers who are in the process of taking a new C&G mortgage, or have made changes to their mortgage via an intermediary for information and reassurance. All other existing customers will be notified as part of their annual mortgage statement letter.”

He says as the UK’s largest mortgage lending group, Lloyds Banking Group remains committed to the intermediary market.

He adds: “Our aim is to serve that market through the brands that give us the most effective presence: Halifax Intermediaries for mainstream lending, BM Solutions for buy-to-let and Scottish Widows Bank will offer offsetting and other flexible mortgage facilities through its professional mortgage and flexible mortgage.”

But Aaron Strutt, communications manager at Trinity Financial Services, says: “This is not the sort of news that brokers want to be hearing and it is a real shame that we are losing access to Cheltenham & Gloucester as a brand. Lloyds Banking Group do not sound particularly committed to the intermediary market.”

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Readers' comments (30)

anthony peters | 17 Mar 2011 12:35 pm
never been one of my favourite lenders but this is a big blow to the broker market. We have already lost brands like A&L recently too.
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Anonymous | 17 Mar 2011 12:35 pm
This is such a shame, C&G have been in the industry since the 1800's and Lloyds have sabotaged this excellent brand. The numbers are now dwindling and this will affect consumer choice. They made a mistake with withdrawing the best ever offset provider (I.F) and now we mourn the loss of C&G.
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Anonymous | 17 Mar 2011 12:36 pm
What we are seeing is more and more mortgage lenders accepting the clients which we introduce to them and then withdrawing from the market and with that taking our ongoing business from any client who wishes to move house, remove a name / add a name to mortgage or take a further advance! We help them in times of crisis to keep their businesses afloat, but now it suits them to cut mortgage brokers out the equation. Just another money grabbing banking strategy in my personal opinion. When every other lender follows this route, it is doubtful the governement will be ringing all the unemployed brokers offering them financial assistance!!!!
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roger travis | 17 Mar 2011 12:44 pm
likewise, although not the best lender in terms of online system or rates, its a big loss. it won't be good for the 90% FTB market

they were great to be able to speak with a mandated Underwriter rather than the processing team.
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Dazed & Confused | 17 Mar 2011 12:45 pm
The Roll of Honour

Cheltenham & Gloucester
Alliance & Leicester
TMB
Bank of Ireland
Bristol & West
DB Mortgages

Before much longer there will be no need for mortgage intermediaries...the FSA will have their utopian state of just the one lender! So much easier for regulation purposes don'cha know!
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Anonymous | 17 Mar 2011 12:45 pm
I try to avoid using any lender associated with the Lloyds Banking group due to duel pricing. I think what most people will find laughable is Peter Curran's assurance that LBG are committed to supporting the intermediary market. Very strange way of demonstrating that support!
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john | 17 Mar 2011 12:46 pm
watch this space, the ball hastarted rolling.who next -TSB , Halifax..
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Steven Balmer | 17 Mar 2011 12:48 pm
Just explains exactly why a monopolies commissions would have refused the merger under any other circumstances.
It's about time this group was broken up so as to increase competition and diminish risk to the economy for failure.
It is nothing short of offesnive for Lloyds HBOS to claim to support intermediaries. They have looked to take advantage of dire times in any and every way imaginable - demise of the intermediary has always been a blatant agenda. I wish they would have the courage and decency to say what their actions prove.
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Anonymous | 17 Mar 2011 12:51 pm
Why was Lloyds allowed to takeover Hbos in the first place.It seems that they have helped ruin the Hbos brand.
No lending with bos,IF gone,tmb gone,now c&g no longer available to brokers
Im of the understanding that they wanted to reduce their market share.Why dont they sell the brands they are not using to another company who can be proactive with these
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Ancient Wisdom...is a mortgage broker in N3 | 17 Mar 2011 12:56 pm
C&G never had the best ratesa anyhow, I last placed a deal 2 years ago! - Their rates are awful and some consolidation should be expected within LLoyds HBOS Group.
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