According to a recent report a number of brokers have complained over the fact that there are various mortgage loan deals that they are no longer able to offer to customers. Whilst over 50% of mortgage customers are dealt with through brokers there are now a number of lenders that are offering certain mortgage deals only to customers that apply to them directly rather than to those that apply through a broker. A complaint to the Financial Services Authority has now been filed by the Association of Mortgage Intermediaries (AMI).
However, officials from the FSA state that the fact that lenders are refusing to offer certain deals through brokers does not necessarily mean that the consumer will get a bad deal. An FSA official stated: “It is a commercial decision for a lender whether they want to offer products directly to the public or via a broker. Anyone dealing with consumers should ensure that consumers are treated fairly.”
Many consumers go through brokers to find a mortgage, and the broker earns commission from the lender for each mortgage sold to consumers. However, the global credit crunch has seen a range of drastic changes taking place in the mortgages market, and this includes taking many mortgage products off the shelves altogether, limiting access to certain mortgage products, and offering some products directly rather than through a broker.
Lenders have become far more restrictive with regards to mortgages, and by cutting out brokers with some of their deals are able to better control the flow of applicants and customers that they take on. A number of lenders have now launched deals that are only available to consumers that apply through them directly.