Research revealed that while public awareness of offset mortgages was growing rapidly, some borrowers were not considering or unaware of First Direct’s offset mortgage because it was not available through intermediaries.
The First Direct mortgage contains no redemption penalties, compulsory insurances or restrictions on lump-sum repayments.
When questioned on First Direct’s plans to expand its intermediary operations David Whitley, media relations manager, said: “This is a business trial. We will assess its success in six months and make a decision then.”
Whitley would not comment on what levels of business the lender hoped to achieve via intermediaries.
Commenting on the development Rob Clifford, chief executive of Mortgageforce, said: “Our two companies have a great deal of synergy and are both pioneers in our respective areas of specialisation. Having pioneered Co-Operative Bank’s and Virgin One’s entry into the broker market, we are delighted to be leading the way again, this time with First Direct.”
Christopher Ollerenshaw, chairman of the Black & White Group, also welcomed First Direct’s entry into the intermediary market. He said: “Lenders have to be pro-active about their distribution channels as intermediaries provide about 60 per cent of business for them.”
