Santander’s new tactic on product transfers kicks brokers in teeth
We all know that Santander has a poor offering on product transfers, especially compared to big players such as Woolwich, Virgin and Halifax. It currently allows a broker to submit a product transfer but does not pay them for it.
Our BDM told us brokers had requested this facility so that, at least, they could charge their clients a fee to do so. Does Santander think we are stupid enough to believe this is what brokers want?
This, however, is not the point of my gripe, irritating though Santander’s policy is.
A client sent me a letter he had received from Santander that proves the lender really is kicking brokers in the teeth. His fixed rate of 3.85 per cent finishes on 31 December but the letter states that, if he contacts Santander for a new rate before 19 September, it will waive the early repayment charges. Today’s rates are lower than his current rate, so clearly this is an option that will interest him as he will gain a further three-month saving if he acts now.
Although this is a good deal for the client, it completely denies me the chance to at least look at a remortgage compared to a product transfer. Remortgaging is usually a better option but often the hassle factor means a client will remain with their current lender, and I fully understand this.
However, this new tactic from Santander is clearly aimed at denying us this opportunity. It will say this is being offered in the interests of the client but the logic behind the offer is clearly aimed at cutting brokers out of the loop and keeping our clients for itself.
How many brokers know that this is what Santander is doing? Beware sending it clients in the future.
Peter Stokes, Davidson Deem
A spokeswoman from Santander says:
We want to work with our intermediary partners to ensure our customers get the best service, products and advice.
We offer the same retention rates to customers whether they call us, go online or visit an intermediary. This is detailed in the letter we send to customers ahead of their product maturing.
Many estate agents sing from Persimmon’s hymn sheet on in-house rule
I write in response to the letter from Richard Scott regarding Persimmon new-build homes. What an absolute disgrace its stance is in insisting that the buyer uses the in-house mortgage broker – who, incidentally, works miles from the site.
However, this is not unusual because many estate agents sing from the same hymn sheet.
We came across a broker who would not put an offer to the vendor unless the buyer agreed to arrange the mortgage with them. Our long-standing client told them where to go and also spread the word to his friends.
Another broker actually rang our client after we had an offer on the table and, when we questioned their ethics, they said it related to money laundering. Really? Comedian John Bishop may use that one at his next gig because it is so laughable.
I looked up the broker on the FCA website and they were nowhere to be found; what a surprise.
Unfortunately, the regulator seems utterly powerless to address this problem and we brokers must carry on regardless.
Brian Rossiter, Armchair Mortgages