View more on these topics

Lender accused of elitism

A broker has accused Newcastle of elitism over its refusal to offer its products to all brokers.

Chelsea Mortgage Management says it recently contacted the building society with a view to doing business to it but was told that it only introduced to selected brokers, including Savills and Charcol.

Simon Bucknell, business development manager at Chelsea Mortgage Management, says: “I spoke to the business development manager at Newcastle and he told me that it did not take introducer business. I said that was funny as it had exclusives with Savills and Charcol. He said it did but that Newcastle doesn&#39t normally take business from other introducers unless it is sub-prime business through a packager.

Bucknell adds: “I guess Newcastle will roll out the same old excuses about this being to manage business better but it smacks of elitism to me.”

Bucknell says his main concern is that this type of strategy will make it impossible for directly authorised mortgage brokers to say they are independent once regulation comes in if they cannot access the whole of the market.

But the FSA says that as this is a commercial decision on the part of the lender, provided brokers can demonstrate they have looked across the market there should not be a problem.

A spokesman from Newcastle tells Mortgage Strategy that while the society has numerous distribution channels, these are under constant review. He says: “In no way is it a closed door to introducers. Newcastle is highly conscious of authorisation and how that is going to change the market. Hence distribution channels are under regular review.”


Abbey for Intermediaries launches awareness campaign on offset deals

Abbey for Intermediaries has more than 20,000 intermediaries in its sights with the launch of an awareness campaign on offset mortgages. Intermediaries are being invited to send for a sales and information pack illustrating in detail how Abbey&#39s Flexible Plus offset savings mortgage works. The pack will also include customer-focussed literature to help clients visualise […]

Heritable Bank launches limited tranche of self-cert and buy-to-let deals

Heritable Bank, the specialist mortgage lender, is launching a limited tranche of three-year fixed rate funding for self-certification and buy-to-let mortgages. Rates of 5.99% fixed until March 1 2007 are now available for LTVs of up to 75%. A rate of 6.24% is available for LTVs up to 85%. In addition to these, Heritable Bank […]

CHL sets out to woo self-cert customers

Capital Home Loans has launched what it believes to be the market&#39s cheapest self-cert tracker in a move to build itself a larger stake in the self-employed market. The tracker has been pegged to Bank base rate plus 0.74% until June 1 2007, giving it a current rate of 4.74%, to woo more self-cert customers, […]

Offering principals support

Cardiff-based Next Generation Mortgages is launching a support service targeting intermediaries applying to be directly authorised by the FSA. There will be no upfront fee for principals or prospective principals signing up to the service but they must commit to submitting two specialist mortgage cases through NGM every month. Features of the NGM Principal offering […]


News and expert analysis straight to your inbox

Sign up