Kent Reliance has blasted Concordia as nothing more than a cartel and says it will be bad for consumers.
Rob Procter, deputy chief executive of Kent Reliance, says this is terrible news for the consumer and should worry the Financial Services Authority.
He says: “I think that this is terrible news for the consumer and should worry the FSA.
The collaboration of these five large brokers will reduce competition and choice and create a monster that will try to manipulate the market.
Smaller lenders or those that refuse to pay higher procuration fees will be excluded from their panels.
Advisors will recommend lenders on the basis of the fees that they will receive rather than the quality of the product.
How does this square with their duty to give best advice?
Ultimately the consumer will pay and higher proc fees make better rates for the consumer impossible.
Cartels are by their nature anti-competitive and that is what
Concordia is, however they try to dress it up.”
Kevin Duffy, managing director of Hamptons Mortgages, says: “It is disappointing that Kent Reliance hasnt grasped what was very clear in the outline of what Concordia is about. These five businesses are all directly authorised and highly compliant, and all have excellent relationships with the FSA.
So why we would bother or risk entering into a price fixing cartel is beyond us.
But Kent Reliance is an important and futuristic lender for us all and we are happy to set it straight on how Concordia will work in practice and why there will be significant benefits for all lenders, including building societies.