View more on these topics

Lenders should cherish their clients, not push them away

From Andrew Botte

Why do lenders give their existing customers such a raw deal?

I have recently had two prime mortgage cases, one with Abbey and the other with Alliance & Leicester.

The first case has been with Abbey for the past two years and come up for mortgage review.

The customer came in to see me for advice after being offered a new rate of 5.25%. This is despite Abbey offering new customers a rate of 4.88%. Is it just me, but if I was a director of Abbey I would back a proven payer every day of the week rather than push a customer away. The board of Abbey may be pleased to know they have pushed the customer in question all the way to Woolwich. Madness.

The second case was with Alliance & Leicester. The client had been a customer of Alliance & Leicester for more than 20 years with a peanut-sized mortgage balance of 2,000. Due to a marital breakdown she needed to raise 50,000 to buy out her partner.

Despite fitting the criteria with ease because of the extremely low LTV involved, the local Leicester branch of Alliance & Leicester offered its SVR of 6.89%. A logical offering? I think not.

Never mind though, I managed to get the customer in question a stonking five-year fixed rate with Bristol & West.

In times of rising repossessions and interest rate hikes, surely it would make sense for lenders to cherish their existing customers. Or am I just being old-fashioned?

Andrew Botte
Chase Evans HomeLoans Limited
South Wigston,
Leicester

Recommended

Quick thinking…

A weekend’s loan of a Ferrari F430 supercar was up for grabs on QuickBridge’s stand at the Mortgage Business Expo last week. Entrants to the competition, run in association with Mortgage Strategy, had to say why they deserved the use of the car. The winner was Surrey-based adviser John Boyce (pictured are QuickBridge managing director […]

Desktop sourcing will be history within three years

From Richard Griffiths The press coverage of Network Data’s possible sale of its mortgageLink sourcing system (Mortgage Strategy November 6) included a comment from a sourcing system source who said: “Why would anyone want to buy mortgageLink? The sourcing system market is pretty much sewn up”. It is rather gratifying when a competitor cannot see […]

Price paramount when selecting GI provider

Select & Protect has revealed that despite the ongoing criticism of industry-wide misselling and the treatment of customers, price is still the most important factor when recommending general insurance providers.The survey of over 500 intermediaries revealed that 72% of intermediaries felt that price was the main deciding factor when recommending a mortgage protection provider. 45% […]

Get tougher on estate agents

The Royal Institution of Chartered Surveyors is calling for more action to regulate estate agents after the Queen’s Speech last week recommended agents join a redress scheme.The Consumers, Estate Agents and Redress Bill is a step towards increased regulation in the sector and would offer greater protection to consumers.Under the measures estate agents will be […]

thimbnail

Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.

Newsletter

News and expert analysis straight to your inbox

Sign up