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Dual pricing is no longer a threat to brokers, says AMI

The Association of Mortgage Intermediaries says dual pricing no longer poses a serious threat to the broker market.

Robert Sinclair, director of AMI, says that although dual pricing still exists, lenders have been moving towards a more level playing field since last April.

He says: “Some banks are implementing dual pricing policies and there are still examples of significant differentials in the market, but most have either eradicated or reduced the gap to a reasonable level.

“Lenders should be aware that dual pricing puts brokers in a difficult position when they are in discussions with customers, whose interests they must obviously put first.”

But Andrew Montlake, partner at Cobalt Capital, says that while dual pricing is not as bad as it has been there are worrying signs of it creeping back.

He adds: “I understand why lenders have to do a certain amount of business through their own channels but it is a serious mistake to exclude brokers.”

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