The top 13 deals for a two-year fixed rate mortgage (based on £150K) are only available direct, and of the top 20 deals only three are available via intermediaries.
“This reduction in competitive deals has led Jonathan Fischel, head of mortgages and credit unions department at the Financial Services Authority, to advise intermediaries to advise on direct only products, and charge a fee for the advice given.
“He also commented that most sourcing systems do not show direct only products. eMoneyfacts.co.uk has the facility for intermediaries to opt whether or not to include direct only products in their product sourcing. A priceless facility at the current time.
“However at the moment, the majority of lenders are now receiving more business than they can actually process. If the products that are currently only available direct were also made available to intermediaries, then the lenders would no doubt find other ways to restrict their business volumes, such as further tightening their lending criteria.
“There are less mortgages being written, and this position is likely to continue for at least the next twelve months. It is likely that mortgage intermediaries will need to widen their scope of financial advices in order to survive.
“The argument on dual pricing will no doubt continue to rumble on. However, for a long time mortgage clubs and packagers have benefited from exclusive and semi-exclusive deals with lenders. If they are looking for a level playing field, it could be argued that these exclusive deals should also come to an end.”
