DB Mortgages is to launch a direct-to-broker online proposition but has assured packagers that it is not turning its back on them.
The proposition will be piloted by an as-yet unnamed network and mortgage club. The products will be similar to those already available through pack-agers and the lender says it will be a soft launch to test its systems.
The move has ruffled feathers in the industry. Terry Pritchard, director of packagers at edeus, says: “When you think 70% of all sub-prime business is packaged, this seems outrageous.” But Payam Azadi, head of marketing at The Mortgage Times Group, says: “As long as DB continues to off-er a competitive proposition to packagers, fair play to it.”
Bill Dudgeon, managing director of DB, says: “We’ve nev-er hidden it from packagers that we’re going to go direct to brokers. But packagers will find the system is built to complement them rather than cut them out.”
To that end, once brokers have completed the decision in principle and Key Facts Illustration for a given case they can then choose to assign it to a packager of their choice.
Lenders including Kensington Mortgages and Money Partners have added direct arms to their propositions in re-cent years.
Dudgeon says the move will help to ensure DB Mortgages is in the premier league of lenders, “where the most forward-thinking lenders are, although we won’t be cutting edge yet”.
The first phase of the proposition’s launch will take place in the next two weeks, although Dudgeon won’t give a precise date.
But he reveals the launch will be a slow push, in keeping with the conservative stance of the lender’s German parent company, Deutsche Bank.