Clients do themselves harm by going to lenders direct

It was interesting to read comments by Gerry Bell of GE Money Lending (Mortgage Strategy Online August 21) stating that around 3.4 million direct mortgage applicants were declined at least once in the past 18 months.

This confirms that clients must get independent advice when sourcing products. Those who feel they can get better deals by going direct or using price comparison websites may be causing more harm than good, especially since multiple applications can have an adverse affect on their credit ratings.

We have had numerous calls from clients who think they have found better rates direct with lenders, only to have their applications declined at the last minute as they fall outside their criteria. For example, we’ve seen cases where customers have been declined due to lenders suddenly reducing their income multiples.

The feedback we get is that it’s a nightmare to get through to certain lenders when applying direct and the process is time-consuming.

Competent brokers should be able to source rates correctly to minimise risks. We review our clients’ mortgages regularly, usually three months before their end dates, to ensure they remain competitive.

We are transparent and not afraid to recommend direct deals where appropriate. We then ensure clients benefit from future mortgage reviews. This stance has seen us receive numerous referrals from them.

It’s good to see lenders have again realised that brokers are the way forward and we look forward to our next range of best buy exclusives.

Mark Wadmore

Chartwell Funding