Providers are helping clients to bypass brokers by using internet offers

From Martyn Harris

You bet. What’s more, the product providers seem to be helping them in this venture – and it appears they don’t mind clambering over us poor, heavily compliant intermediaries to get their targets.

I didn’t ever think I’d see the day I’d lose a case in this way but quite recently I placed a mortgage with a lender and the client subsequently trawled the net -after I had submitted the paperwork -and a new lender was found (despite the fact they had now an offer letter from lender A).

Well, bless him, he asked me to arrange loan number two, and after the second paperwork had been completed and was just about to be sent, he rang excitedly to say he’d seen a brand new offer on his computer from lender C (Alliance & Leicester). Could I arrange this as he “desperately” wanted it, he asked. Well, dear readers, I had already nailed my flag to the mast and said I wouldn’t charge a fee, as this client was a referral from a good client of mine.

The Alliance & Leicester deal was a direct internet offer. I could match it but it would pay no procuration fee, a fact I related to the borrower. There were no other complementary Insurances to offer either. Would the client offer to pay a fee? Would they call back after I relayed this information? Do pigs fly?

I heard nothing from him apart from a second hand message to say he had taken the direct deal, so I was left with nothing but a mass of nicely filed, compliant paperwork and a heavy heart.

I was, however, taught a valuable lesson and hope that readers may learn from it too.