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Metro Bank has not ruled out broker deals

Metro Bank says it has not ruled out offering its mortgages through brokers.

Speaking at a banking conference in London today,  Anthony Thomson, co-founder and chairman of Metro Bank, says: “We wouldn’t rule out using them in the future.”

Thomson says the broker sector has been decimated because of a drop in wholesale funding.

When asked by Mortgage Strategy why it doesn’t currently offer its deals through brokers, Thomson told delegates: “We are a tiny bank. I think everybody should have the opportunity to use the channel they prefer. People can still choose to use a broker if they wish, it is the consumer’s choice.”

The bank opened its doors in July, offering a range of direct mortgages.

Last week the bank revamped its range offering two-year variable rates at 3.95% at 80% LTV and 2.95% at 60% LTV, two-year fixed rates at 4.5% at 80% LTV and 3.5% at 60% LTV and three-year fixes at 5% at 80% LTV and 4% at 60% LTV.

It also offers a five-year fix at 4.5% at 60% LTV and 5.5% at 80% LTV.

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  • colin 23rd November 2010 at 3:16 pm

    Tom, exactly…all the doom merchants are not seeing the bigger picture……..the adviser pool has shrunk by almost 2/3, with new Approved Persons it isn t going to get any bigger, in fact given the average age of advisers i think it will decrease further. We don t need a market the size of 2007 to make a good income. Lenders are warming to remortgaging at last. If you do your job properly its not too difficult to make each case worth £1k with proc fee, Life, B&C , Sols intro.

  • Bob 23rd November 2010 at 3:05 pm

    Luke, sorry, but you aren’t correct. If you read CP10/28 – which covers Distribution & Disclosure, you’ll see a number of proposals that (if bought about) will significantly increase direct offer costs. Bank telesales staff (as with Mortgage Advisers) are going to have to hold a mortgage qualification (cost c£5000 inc’ lost working time) and prove “appropriateness” of every sale, which includes all non-advised sales. This covers c30% of all mortgage sales, the bulk of which are lender sales. These 2 things alone make the intermediary channel much more attractive. Re proc fees, they are not regarded as a regulatory concern and as such are an effecient method for lenders to reward intermediaries – these will continue, all be it that they will represent a lower proportion of the new model mortgage advisers earnings.

  • Tom Cleary 23rd November 2010 at 1:29 pm

    Colin – I completely agree with your sentiments. The market will come back to us (from 2012 onwards)as sure as night follows day. The future is bright, the future is face to face independent mortgage advice. For those of us that are left, it will be Milk and Honey…

  • colin 23rd November 2010 at 12:36 pm

    MMR still has a long way to run and finer details not finalised…..

  • Luke Atkinson 23rd November 2010 at 12:28 pm

    I disagree, when you are FORCED to tell a client post MMR that it may be cheaper if you approach the lender direct, any client with any intelligence will approach them direct.

    The interesting point that another reader made was that the lenders aren’t being FORCED to tell clients that they may be able to get a cheaper deal elsewhere or by using a broker.

    Hang up your gloves, its retirement time.

  • Luke Atkinson 23rd November 2010 at 12:28 pm

    I disagree, when you are FORCED to tell a client post MMR that it may be cheaper if you approach the lender direct, any client with any intelligence will approach them direct.

    The interesting point that another reader made was that the lenders aren’t being FORCED to tell clients that they may be able to get a cheaper deal elsewhere or by using a broker.

    Hang up your gloves, its retirement time.

  • colin 23rd November 2010 at 12:17 pm

    the pendulum will swing full circle again, the fact is that a very small % of business is done direct. HALifax is great example of this, its dual prices to the ying yan, offers £500 towards gas and electricity and still is attracing a fraction of its target. The introduced channel will come back as MMR makes the costing of a direct offering uneconomical and is far easier to attract volume. Branches can only handle a small uplift in volume. Those predicting the death of brokers are wrong. The old business model may not be viable, and the 20th century broker relying on proc fees and remortgages died ages ago………….but the new bred a great opportunity awaits when the dinosaur awakes in 2012 onwards

  • GMS 23rd November 2010 at 11:53 am

    A positive sign for the intermediary market.
    Metro launched with intentions of being direct only. Could this be as a result of the recent consultation paper?