The move from the prime loans lender has prompted speculation the company is facing difficulties, with the high profile marketing campaign it has maintained in recent months thought to have cost several million pounds.
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A broker, who wished to remain anonymous, told Mortgage Introducer: “Picture must be facing a tough time. It spends massive amounts on television advertising and that’s a risky strategy to get a response, as you have to commit millions of pounds to it. To pull away from the intermediary market is silly, as it doesn’t cost anything. There’s a lot less margin at the prime end and it’s harder to do business.”
However, Graham Donald, chief operating officer at Picture Loans, denied the move to withdraw from the intermediary market was anything other than a review. He said: “Picture is suspending its intermediary product for a short period of time to allow us to review the product and make some changes. We want to ensure that we develop a product that offers value for both intermediaries and their customers, while guaranteeing the best approach for Picture’s long-term growth.
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“This suspension is only for a limited period. Picture is healthy, thriving and on its way to becoming number one in this market sector. We’re a prime lender and are enthusiastic and excited about the future of Picture. We are wholeheartedly committed to the intermediary market and are already working on numerous options to provide a brand new product which is both profitable for Picture and appealing to the intermediary market.”
