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Nationwide for Intermediaries stops guarantor mortgages

Nationwide for Intermediaries is stopping guarantor mortgages through brokers from tomorrow.

Nationwide’s guarantor deals will be direct-only and brokers will now have to go through The Mortgage Works brand.

A spokesman for Nationwide says brokers can still use the TMW brand.

He says: “The number of guarantor cases is low and it makes sense to rationalise them through TMW. Nationwide continues to be supportive of the broker market with a specific range of intermediary-exclusive mortgages – TMW Prime.

“Nationwide is absolutely committed to the guarantor market, which is why it has a unique proposition through TMW with the Limited Liability guarantor product range. Combined with the Full Liability guarantor product range, this means we have one of the most comprehensive guarantor mortgage ranges exclusive to intermediaries.”

But Aaron Strutt, communications manager at Trinity Financial Group, says the rates are worse for TMW.

He says: “The TMW deals have 1% arrangement fees and early repayment charges on fixed deals are 5%. The direct deals won’t have that 5% penalty.”

TMW’s range includes full liability products with rates starting from 2.94%.

Limited liability products, which are designed to assist those looking to guarantee a smaller proportion of the loan, have rates from 3.19%.

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  • Leon Jones 18th December 2010 at 5:40 pm

    Fair points everyone, firstly the day of the broker is not over. I have been qualified 3 years and am doing very well thank you. This is down to several things getting out of bed on a morning and loving my job, secondly meeting new clients giving them the best advice I possibly can, and by doing this I find another client naturally, and for J Bennet yes you can use a lender over another if service levels are not up to it. You can even state this on your closure letter if you can evidence it. This is called TCF and before the acronynm was invented (common sense) everyone should have been doing it anyway… If a bank is not performing you go else where i look at myself as the customer that is if the service is poor get lost. We can only hope the banking system is broken up, to encourage choice and competition. So what brokers have to work hard, but from my last job sitting in dig outs in Afghanistan its a peace of cake… If your genuine with your advice and you move with the industry as in all you will always do well. Brokers of old pick your socks up, and Banks need to stop thinking they are the be all and end all…. Get back to basics we all won’t go far wrong….

  • J Bennett 17th December 2010 at 9:54 am

    Thought I would add to the comments above. I no longer work for a bank any longer (thank goodness) I spent years dealing with moaning, unappreciative brokers. When are you going to wake up to the fact that banks (because there is now so little competition)can pick and choose to deal with those brokers that can, and do provide good quality consistent business. Banks are extremely busy BECAUSE there is so little competition, and brokers pile in when there is a good rate expecting the same level of service, as those who consistently support a particular lender. RBS recently had some great re mo rates. Of course one man and his dog then expected instant support, offers in 2 days etc, when in fact the last time they had used that lender was over 2 years ago! Why should those “fair weather” brokers expect such attention? I also think it quite arrogant for the broker above who thinks they are the only ones who can give good advice and the best deals. I’m sure there are many mortgage advisors in branch who offer good sound advice, and often better rates (as they have access to the better direct deals you brokers don’t). So how can you say you are the ones not “stitching people up!” You may argue when the tables turn, the banks will be cap in hand begging for business from the brokers. I would suggest there is a very long time to go yet before that happens again. So brokers stop moaning, work with the lenders and their BDM’s and you just might get a far better service and the recognition you crave.

  • J Bennett 17th December 2010 at 9:54 am

    Thought I would add to the comments above. I no longer work for a bank any longer (thank goodness) I spent years dealing with moaning, unappreciative brokers. When are you going to wake up to the fact that banks (because there is now so little competition)can pick and choose to deal with those brokers that can, and do provide good quality consistent business. Banks are extremely busy BECAUSE there is so little competition, and brokers pile in when there is a good rate expecting the same level of service, as those who consistently support a particular lender. RBS recently had some great re mo rates. Of course one man and his dog then expected instant support, offers in 2 days etc, when in fact the last time they had used that lender was over 2 years ago! Why should those “fair weather” brokers expect such attention? I also think it quite arrogant for the broker above who thinks they are the only ones who can give good advice and the best deals. I’m sure there are many mortgage advisors in branch who offer good sound advice, and often better rates (as they have access to the better direct deals you brokers don’t). So how can you say you are the ones not “stitching people up!” You may argue when the tables turn, the banks will be cap in hand begging for business from the brokers. I would suggest there is a very long time to go yet before that happens again. So brokers stop moaning, work with the lenders and their BDM’s and you just might get a far better service and the recognition you crave.

  • John Staples 16th December 2010 at 3:35 pm

    Shouldn’t you be using the lender which offers the most suitable product for your customer, not the one that gets you your proc fee the quickest???

  • William Kingsley 16th December 2010 at 2:05 pm

    Dual pricing and terms by the back door from Nationwide – their service levels are appalling anyway so I am using anyone but them – even Abbey are better at the moment.

  • Roland Millward 16th December 2010 at 11:23 am

    I hate to say this but the days of the mortgage broker are coming to an end. Lenders (most of them) are working it out that way. With direct only deals and conditions being better why should anyone use a broker? Many websites are now acting as search engines for deals and so anyone online can do their own research.
    Sadly the most vulnerable in our society will be eaten up by the banks and sold mortgages which are not the best for them and banks will be doing what they have always done.Stitch people up! Without brokers directing business to the better lenders the worst banks will still be able to get plenty of business.

  • Tim Leonard 16th December 2010 at 11:06 am

    Rather disappointing. I thought that this option would have remained as it is a pretty fundamental part of their offering. The argument of saying that is is business as usual is rather frustrating as being based in Northern Ireland TMW will not lend. Maybe this would be a good opportunity to introduce themselves to our market! I might be waiting a while…..

  • Tim Leonard 16th December 2010 at 11:06 am

    Rather disappointing. I thought that this option would have remained as it is a pretty fundamental part of their offering. The argument of saying that is is business as usual is rather frustrating as being based in Northern Ireland TMW will not lend. Maybe this would be a good opportunity to introduce themselves to our market! I might be waiting a while…..