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Lenders should be fair now because they will need brokers again one day

I was interested to read Scott Swift’s letter in the April 7 issue of Mortgage Strategy. I share Swift’s frustration with the way Royal Bank of Scotland Intermediary Partners’ First Active brand has changed its retention policy but unfortunately, this is just the tip of the iceberg – lenders simply don’t need brokers as much as they did before the liquidity crisis.

For example, Woolwich currently has a 60% LTV lifetime tracker available at base rate plus 0.79% with no redemption penalties or fees, but this can only be arranged direct with the lender.

At the time of writing, the best lifetime tracker from Woolwich that brokers can access is available at base rate plus 1.59% and carries penalties for the first three years. How is this fair on brokers looking for the best deals for customers?

I know it’s been always the case that customers get different products di-rect from lenders but this situation is getting worse.

The leader column in the same issue lays out the benefits of using brokers but brokers are becoming less reliable when it comes to providing the best deals for customers.

The way brokers are being treated is shameful. So come on lenders, give us a break – you may not think we are important at the moment but there will come a time when you need us again, so please start treating brokers fairly.

Kevin Mitchell
Broker
Blueprint Mortgages
By email

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