The Club asked brokers to identify the best solutions available to lenders when credit is restricted and the vast majority said that lenders should raise their pricing across all channels. The purpose of the research is to try and move the industry on from the dual pricing debate to explore positive ways for lenders and advisers to work together. After pricing, the next best options were to tighten lending criteria or restrict distribution channels.
Ben Thompson, Director, Mortgages at Legal & General said: "I realise that conditions are very difficult for lenders, but there's nothing guaranteed to annoy a broker more than dual pricing. It's like treating them as second-class citizens. The likes of Nationwide and Coventry for Intermediaries should be congratulated for not going down this route, but then fairness and transparency are part of their core proposition. Brokers have long memories and will remember those lenders which have stood by them in difficult times."
He added: "The mood at the Legal & General Mortgage Club awards, held on 5 June and attended by lenders and mortgage advisers, was one of co-operation and mutual support. The general feeling was that we all need to work together to get through this recession and a long-term outlook is needed rather than chasing volumes from week to week."
Other suggestions that brokers came up with were:
Exclusive deals for first-time buyers
Deal with trusted, quality distributors that can control volume
More credit extended at high loan-to-values for borrowers with good affordability
Replace proc fees with monthly commission
Well managed funds booking process (electronic)
Legal & General will be working with the lenders on its panel throughout the rest of this year to discuss the viability of implementing these suggestions.
Legal & General Mortgage Club acts as a one-stop-shop for mortgage advisers to access lenders. With over 8,000 members who are either directly authorised or appointed representatives of Legal & General's network (LGPSL), the Mortgage Club has the weight to negotiate the best exclusive deals with lenders.
Advisers can use the Club to access almost all lenders in the UK market from one portal. The Mortgage Club also offers access to a range of extra services, such conveyancing Home Information Packs, commercial and personal loans.
