Just last week I had a client walk into a Halifax branch and get offered a deal that was 0.3% lower than I could offer with an arrangement fee that was £200 less.
Of course, I did a thorough job and gave him appropriate protection recommendations as well as the mortgage so it wasn’t a dead loss, but the mortgage was for £235,000. That’s a proc fee of £822.50 gone because the lender I was recommending offered a better product direct.
A 0.3% difference I might be able to justify on the grounds that in the long run the client would see lower mortgage payments due to the excellent service I would provide as opposed to them being a number to a faceless bank official.
But when we’re talking about a difference of almost £60 per month, there’s a bitter end to that line of thought.
Of course, Halifax isn’t alone. This is still happening with lots of lenders.
I’m not sure why trade bodies such as AMI should try to put a positive spin on something that is still an issue, is still threatening the broker community and is still a problem for the professionals AMI claims to represent.