Brokers urged to check exclusives aren&#39t &#39cons&#39

Nick Baxter, director of Mortgage Promotions, says brokers should vet exclusive products to check they do not simply pay better procuration fees without adding true consumer value.

Baxter&#39s comments come amid claims from some parts of the industry that exclusives through distributors are a con, chosen by brokers at the expense of consumers who would do better to approach the lender direct.

Mortgage Promotions does not offer exclusives. Baxter says: “We don&#39t have exclusives, we give our members access to the full range of products our lending partners market direct.

“I work on the assumption that if they&#39re marketing their products through the branches, they&#39re good enough as they are.”

Baxter says he cannot comment on behalf of other mortgage clubs that do negotiate exclusives. But he does flag up potential pitfalls of exclusives at packagers.

He says: “If packagers offer exclusives, the broker needs to look at that very closely to work out whether the product has been tweaked to pay better fees to the packager or broker at the disadvantage of the consumer. Packagers have to create a big fee to cover their own administration, and I don&#39t think they add value.”

But Pink Home Loans defends the concept of product exclusives, which it offers both as a packager and through the Pink Mortgage Club.

Mark Howell, marketing manager at Pink, says: “Without doubt, exclusives add value to the consumer. Pink is typical of the bigger clubs in that we&#39ve got an experienced team that helps lenders design products that are tailored to client criteria. Mortgage clubs reduce distribution costs for lenders so there is more margin for procuration fees.”