A shocking 40% of HBOS’ remortgage business is submitted by brokers who did not place the original deals.
Nigel Stockton, managing director of HBOS Intermediaries, says this is a worrying statistic given the prevailing market conditions.
He says: “To succeed in the current climate brokers need to revisit existing clients.”
The revelation follows a Mortgage Strategy straw poll conducted in December, which revealed that only 68% of brokers planned to review client cases over the Christmas holidays.
Bob Singh, director of Chess Financial Services, says: “Brokers who do not have review systems in place to contact their clients when deals expire are disadvantaging their customers.
“They could also lay themselves open to potential claims for failing to adhere to the Financial Services Authority’s Treating Customers Fairly initiative.”
He adds: “It’s just bad business practice not to review your client databases, not only in terms of TCF but also from an income perspective. After all, 2008 is likely to be biased towards remortgage business.”
Meanwhile, HBOS has regained its position as the UK mortgage market’s number one lender.
Its full-year results for 2007 reveal that its market share shot up from 8% six months ago to 22% by the end of December.
But the lender reiterated its commitment to profitable growth rather than market share when announcing the figures.