Dual pricing going strong, says Home Buyer Systems

Home Buyer Systems has found there are currently no 90% LTV products available for second-time buyers via mortgage brokers but over 30 are available direct.

But the Home Buyer Sourcing Index, its system that compares direct and broker facing mortgage products has also found that for first-time buyers there is only one product, which over two years is £3137 more expensive than the cheapest direct product. This equates to £130 a month more.

The HBSI uses the Council of Mortgage Lenders’ published figures for the average property values for first and second time buyers, together with whole-of-market product information from Defaqto.

It shows the difference in cost to the borrower between the cheapest broker and the cheapest direct product.

Home Buyer says that direct-to-lender products are up to £2900.00 cheaper for the borrower over two years (equivalent to £123.75 per month) than the broker-distributed equivalents for the non First Time Buyer products.

Richard Angliss, managing director of Home Buyer, says: “Direct-to-lender products have consistently been cheaper for borrowers since the dual-pricing issue first came to light in July, making it harder for brokers to earn procuration fees. Now, the lack of 90% deals via brokers is bound to cause further problems for brokers, packagers and networks.

“To help resolve both the dual pricing problem and the current lack of 90% LTV products available to brokers, the Home Buyer Sourcing Index provides accurate, up-to-date, generic information for brokers and their customers. “