Metro Bank knocking on intermediary doors
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Metro Bank is trying to drum up more mortgage business by using brokers but without paying proc fees.
Mortgage Strategy understands that a BDM from Metro Bank has been visiting brokers over the past few months. The bank also appointed former broker Graham Noctor as intermediary BDM this year.
Ian Gray, senior mortgage manager at Largemortgageloans.com, says he has been approached by the bank.
He says: “Although it does not want to pay proc fees, it says it has a unique selling point in that brokers would have access to underwriters who can exercise a degree of flexibility when clients are declined by credit scoring systems.”
But Gray says he has not yet recommended any Metro Bank deals to clients because other lenders have similar underwriting processes with better deals.
Last month, newspaper reports claimed the bank had only sold 100 mortgage deals in the 15 months since its launch.
A spokeswoman for Metro Bank says the bank is constantly reviewing the market.
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Readers' comments (10)
Richard Davidson | 5 Dec 2011 9:16 am
They've only sold 100 mortgages through their branch network. I'm not convinced they've cracked this business yet.
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AA | 5 Dec 2011 9:53 am
Im sure there is a degree of flexibilty when only sold 100 mortgages in 15 months.
The bank obviously needs to be competitive; and offer incentives; and offer proc fees to brokers. Needs to go back to drawing board.
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AB | 5 Dec 2011 10:24 am
I know for a fact the 100 figure is not entirely correct. Dont believe all that you read.
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Anonymous | 5 Dec 2011 2:12 pm
No - it's actually 97!!!!
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Anonymous | 5 Dec 2011 5:21 pm
Come on guys dont you feel sorry for their BDM ! Must be the hardest job in the world
BDM ~ hello I am from Metro bank
Broker ~ the ones who dont pay broker fee's ?
BDM ~ erm yes thats right
Broker ~ out !
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john | 5 Dec 2011 5:48 pm
If your a broker with a good client relationship and you find that Metro offer the best 'deal' is it right that you pass Metro by?
Or perhaps its worth taking a longer term approach and appreciate the business you have done in the past a received fees on. Alternatively as one introducer who I dealt with previously had such a good relationship with the borrower - he came to a private agreement with the borrower in terms of the cost of his time and renumeration.
Its not always about the proc fee - the ongoing relationship is equally important and the benefits which it provides.
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Kevin Vella | 6 Dec 2011 3:49 pm
How can Metro expect brokers to embrace it’s proposition when there is no proc fee in it ?
Times are tough enough for brokers so I don’t feel any compunction towards a lender that doesn’t want to pay a fee for business I bring to the table.
Come on ‘Metro’, we would love to sell your products, so make it worth our while and put some decent products in place with service to match and I am sure that you will be underwriting 100 cases a week.
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Anonymous | 7 Dec 2011 1:40 pm
As Metro Bank appear clueless to the Intermediary Markets perhaps their CEO is being fast tracked for success within the FSA
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Grey Haired Underwriter | 7 Dec 2011 2:09 pm
So best advice is always accompanied by a proc fee?
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Luke Atkinson | 8 Dec 2011 11:04 am
@ Grey Haired Underwriter - Most brokers are self employed and don't have the luxury of a salary from their employer, they need to earn money for their work as they are not charities.
Do you seriously believe that Metro Bank have such a niche product, criteria or rate that offering best advice would mean a broker would have to place a case with them?
Its simple business - you want the customers to be introduced, you pay for them.
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