Post Office cover deal makes brokers see red
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Brokers are threatening to boycott an insurance product launched by the Post Office for them last week, because of its direct-only stance.
The Post Office says it has tailored the product for the 40,000 mortgage advisers it believes operate in the market.
But only recently the Post Office angered the intermediary community by launching a range of 90% LTV mortgage products that are only available direct.
Jonathan Cornell, head of communications at First Action Finance, says that although it’s good to see a tailored broker insurance product many will be reluctant to take up the deal.
He says: “The Post Office obviously takes a direct mortgage stance and it’s not going to change just because we complain. I think quite a few brokers are likely to boycott any products from the Post Office.”
Mortgage Strategy Online has been inundated with comments from angry brokers who say they will not be applying for the product because the Post Office only deals direct with mortgages.
One contributor states: “I can’t think of many in the broker community who will wish to support this product. If we had access to the Post Office’s 90% LTV mortgage products we may reconsider.”
Another states: “The Post Office is one of the reasons there are nowhere near 40,000 brokers left in the market. What bare-faced cheek for it to even consider marketing a product such as this - it’s rubbing salt into the wound.”
The policy covers brokers against loss or theft of computer equipment from premises, theft of keys and damage following theft or arson.
Richard Pennant-Jones, head of Post Office business insurance, says: “Brokerages are at the heart of many local communities in this country.
“We are keen to extend the range of services we provide to mortgage brokers and are pleased to be able to offer a great value insurance service which is tailored to meet their business needs.”
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