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Back to the future as lenders lead bloodless coup

Some months ago Sir James Crosby said it would be a retrograde step if mortgage brokers were forced out of the market.

He is now saying they will disappear. The reason for this is that lenders are being allowed to force them out of the market by offering more attractive deals direct to clients.

We are rapidly returning to the time when we only had to walk down the high street to discover the best deals being offered in lenders’ windows.

How long will it be before we find ourselves being interviewed by bank managers, with them telling us that only after saving with their institutions for six months will we be allowed to access mortgages?

At least we won’t have to wait until lenders have cash available to lend because if they run short they can go to the government and ask for more. Perhaps we ought to go straight to Whitehall and bypass lenders altogether.

The way they have managed to stitch the government up into believing how important they are is an incredible piece of salesmanship or immense naivety on the part of Brown & Co.

Simply put, lenders have been put in charge of government funds. As far as I can recall, the conditions attached to this funding included making mortgages more readily available to stimulate the economy, but has anyone noticed the increased availability of mortgage products? Of course not.

So Barclays, NatWest, the Royal Bank of Scotland, Lloyds TSB and others are in charge of the country’s finances.

Is it any wonder they want to ensure that consumers who need mortgages get as little independent advice as possible? That way they can apply their own conditions and charge as much as they want.

I thought in the commercial world if money was invested in a company, especially to save it from collapse, the investor would be allowed to have some influence over its future. Clearly this is not the case when the UK government lends to banks.

John Toogood

Debt Free

By email


Curriculumvitae: Jonathan Midgley

Describe your current job As co-founder of Evaluate Technologies, an IT solution provider based in the City, my job is to design, build, test, deploy and support our flagship software product Evaluate. This system enables users to submit single mortgage enquiries, receive the best responses from lenders, select their preferred products and then submit applications online.

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