No ‘knee-jerk’ reaction to Paaleads, says Tenet

The Tenet Group is making no knee-jerk reaction to Moneysupermarket.com’s withering attack on the mortgage broker community.

The network confirmed it is considering its relationship with Paaleads, the lead generation arm of Moneysupermarket.com, but says it must consider all its advisers, not just mortgage brokers.

The decision comes after Personal Touch Financial Services severed its relationship with the lead generator despite Moneysupermarket.com retracting the figure that nine out of 10 deals are direct-only.

Keith Richards, group distribution and development director at Tenet Group, says: “We have got the matter under consideration as we discuss the issue with Paaleads rather than Moneysupermarket. Whatever we do, it will be down to our advisers whether they use them or not.

“We are very disappointed by the comments made and we have made our feelings known. But because we represent a number of advisers not just mortgage brokers so we won’t be making any knee-jerk reaction.

“We need to be a bit more balanced before making a decision because Paaleads provide a broad reach of leads for financial advisers, not just brokers. We have made our feelings very clear and very strongly felt. Brokers will make the individual choice whether to use them now.”

The Moneysupermarket press release claimed brokers limit choice and should be used as part of the shopping around process.

Kevin Mountford, head of banking at Moneysupermarket.com, says that lenders no longer need to rely on brokers and they can no longer offer a whole-of -market perspective.

Despite the claim that 90% of deals were direct-only being retracted, the comparison website stands by Mountford’s comments.

Sally Laker, managing director of Mortgage Intelligence, does not deal with Paaleads but defended the role of brokers.

She says: “If they sell leads to brokers I don’t know why they wouldn’t want to support brokers. I think a lot of the exclusive deals tend to be through ARs so they would be broker deals, and Moneysupermarket didn’t consider this.

“There is a place in the market for intermediaries. People are confused and it isn’t only about rates, sometimes there are hidden charges and expensive additional products. Brokers do a pretty good job of guiding customers through this.”