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Lenders slammed for dual pricing

Lenders have been accused of mistreating packagers in the dual pricing of direct-to-broker and packaged products.

Roger Morris, managing director of em-financial, told delegates at the Mortgage Packager Summit that lenders have developed dual pricing because they misunderstand what packagers do and the value they add to the mortgage chain. He also suggests the practice might lead to lenders losing business volume.

He says: “As a distributor I may have to choose between a lender that operates dual pricing and one that does not, to put on my panel. It’s likely I will choose the one that does not.”

Nigel Payne, managing director of The Mortgage Business, says: “I don’t agree with dual pricing but I can see why some lenders do it. Different costs are associated with different distribution channels.”

Morris adds: “Dual pricing is unfair and if lenders offer benefits we can’t compete with, that’s unfair.”

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