Mortgage lenders that have opted to withdraw their intermediary ranges are beginning to change their mind, according to Positive Solutions.
Paul Rignell, mortgage manager at the firm, says some lenders are re-thinking the long-term benefits of dual pricing and could start to change their attitudes towards the intermediary market.
“Lenders have seized the opportunity to take control and maximise profits to help bolster their balance sheets," he says.
"But they are waking up to the fact that they don’t want to disenfranchise a huge section of the market that has produced perhaps two-thirds of their business in recent years."
With the rates on some mortgages currently available through intermediaries costing as much as 0.5% more than direct deals, Rignell says brokers have been forced to point their clients in the right direction for no financial reward.
“Lenders have also won few friends among mortgage customers who are dismayed their broker, their main source of high quality advice at a difficult time, has effectively been sidelined," he says.
“It is in no one’s interest for the current situation to continue and those lenders who do start to play fair with the intermediary market are likely to gain the most in the future.”
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