There’s a lot of talk about lenders’ pricing and products at the moment as they balance pricing against business volumes.
Successive base rate reductions have piled on the pressure in this regard, as consumer expectations and business realities are often difficult to reconcile.
That’s why it is inevitable that lenders’ capital positions are under increasing scrutiny.
Lenders unsurprisingly favour lower LTV products as the capital required to fund these is lower than for higher LTV deals.
This challenge lies at the heart of the debate surrounding product pricing, and is a concern for brokers.
Halifax is sensitive to this and remains committed to supporting the broker market.
On occasion, we have to set our direct pricing differently to that of brokers but it is important to understand that this is the simplest way we have of managing demand.
We always try to do this in a considered and targeted manner, and strive to ensure it has minimal impact on brokers.
Ultimately, we know a mortgage is much more than a headline rate – service and overall value are paramount.
So with uncertainty in the housing and mortgage markets likely to continue, consumers will increasingly value advice and beat a path to brokers’ doors.