Halifax online system welcomed but brokers fume over direct fees
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Halifax officially launches its online broker system today.
The launch marks the culmination of an 18-month project in which the system has been piloted with a number of brokers.
The platform directly plugs in to the lender’s underwriting systems so brokers can see whether cases have been declined or accepted.
It also provides prompts so brokers can see what information is still outstanding to ensure cases are packaged correctly. Meanwhile, navigation of the website has been made easier.
Brokers can choose to have all details of cases emailed to their administrators, while the system expands or contracts in response to clients’ individual needs.
Brian Ewing, senior project manager for intermediary distribution at Lloyds Banking Group, says: “Early feedback on this platform is that you can see brokers’ influence all over it.”
Andrew Montlake, partner at Coreco Group, says: “This system raises the bar for online lending platforms to such an extent that it makes some others seem positively prehistoric. It is a dream to use, easy to navigate and avoids unnecessary information that is the bane of many brokers’ lives.”
But Halifax angered brokers last week after making cuts to some of the fees on its direct products of up to 50%.
It has halved the fees on several of its first-time buyer ranges as well as its 75% and 60% LTV deals. Mortgages with arrangement fees of £995 have seen this cut to £497 and those with fees of £495 now have fees of £247. Fees of £1,999 have been reduced to £998 and £1,499 fees are now £749.
Aaron Strutt, broker with Trinity Financial Group, says: “It makes it difficult for intermediariess to sell mortgages if arrangement fees are halved if clients go direct. It would be nice if Halifax’s marketing campaigns were made more widely available.”
Another broker, commenting anonymously on Mortgage Strategy Online, says: “I think Halifax believed that once it introduced its slick new online system brokers would want to use it no matter what rates it offered. Unfortunately, it was wrong.”
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