Brokers welcome Britannic battle

Mortgage intermediaries and lenders have welcomed Britannic Money&#39s entry into the sub-prime market as a boost to competition, but warn that the new products are not without their flaws.

Mike Fitzgerald, sales director at Brentchase Financial Services, says: “A wider choice allows brokers to give best advice on a range of products.”

Bill Petrie, head of mortgage services at Towry Law, welcomes the increased competition in the market but dislikes the fact that the FRESH product is only available through selected packagers.

He says: “Why on earth do we need a packager between us and the lender?”

And Rod Murdison of Murdison & Browning warns: “Most sourcing systems aren&#39t set up to cope with these complex products from different lenders, making it difficult to compare effectively and prove that you have provided best advice.”

Stephen Knight, chief executive of GMAC-RFC, says: “MIG is charged on these products, which is extra interest by another name. Apart from the discount and the fact that there is daily interest flexibility, there does not, at first glance, appear much to commend the Britannic Money scheme.”

Richard Hurst, communications manager at Future Mortgages, says: “It&#39s always nice to see innovation, although we do have some reservations about the suitability and use of flexible features in this marketplace. We believe a much lower discounted rate gives the greatest help in getting people back on their feet.”

But John Prust, sales and marketing director at SPML, says: “It&#39s a difficult market to break into from scratch, but Britannic Money is an excellent company, so good luck to them.”

And Jonathan Sadler, director of sales and marketing at igroup, says: “We welcome Britannic&#39s move as evidence of the continuing vitality of the sector. And we concur with Mortgage Strategy&#39s leader comment that it provides further evidence of our market finally coming of age.”