Brokers are calling for len-ders to copy Kensington Mortgages’ move to share mort- gage funding equally between brokers and packagers.
The lender is providing funding for products in set tranches to be shared by the two groups. It says this will be done in a fair and transparent way that will limit lending volumes in line with prevailing market demand.
Effective from last Monday, brokers who place deals with Kensington will now receive a slice of allotted funding for specific products as long as applications are submitted before 4.30pm.
Funds will be allotted every month for the products and when the limit is reached the deals will no longer be available.
Sole broker Roy New says the move will bring stability to the market.
He says: “This is a great idea. Other lenders should follow suit if they want to avoid the bad press and disappointment that comes from pulling deals from under brokers’ noses.”
Andrew Montlake, partner at Cobalt Capital, says: “I like this idea. It’s a good way of managing distribution at a difficult time and I’d be surprised if other lenders didn’t follow suit.”
Patrick Day, managing director of Freehold, says the move can be interpreted as Kensington moving more strongly into the broker market.
He says: “Kensington is keeping a foot in both camps by setting equal tranches but the move favours brokers because its prime range is more broker-friendly.”
A Kensington spokesman says: “We have made the change to support brokers and packagers equally and to control volumes fairly.”