One broker who contacted Mortgage Introducer was frustrated that he lost a client because he could not offer the customer the cashback incentive with A&L.
Douglas Shillinglaw of Start Mortgages, said: “Will Alliance & Leicester offer better products via its branches than through brokers? Currently if a client takes out a mortgage through a branch, they receive £250 cashback if a current account is arranged at the same time.
“I had a client who I had obtained an agreement-in-principle with A&L for but when she heard about the cashback, she decided to go direct as I could not offer this incentive.”
Sally Lauder, press manager at A&L, said it would take any broker grievances on board. “We’re fully committed to brokers and this is demonstrated by the fact that, unlike some lenders, we offer the same range of highly competitive mortgage deals through brokers as we do through our branches.
“Where a customer has an interest in taking out another Alliance & Leicester product at the same time, such as one of our current accounts, there may be an additional incentive available.
“At the moment this is only available directly through Alliance & Leicester. However, we are constantly reviewing the way in which we lend and the incentives on offer, and take broker feedback very seriously so we will certainly bear this issue in mind for future reviews.”
John Stewart, director of PMI Independent Financial Advisers, said this was a ‘disgraceful’ move by A&L. “It’s absolutely disgusting that A&L would pull the rug underneath brokers like this.
“It says it wants broker business but this is a good way of losing support from intermediaries. I would be equally angry if I had lost a client in this way.”
