Despite admitting the results were due mainly to the fact its retention strategy hadn’t borne the fruit it was expecting, having had such a dominant market position for so long meant the size of the drop caused a stir in the industry.
However, if brokers weren’t placing business with HBOS in the first three months of this year, where were they putting their clients? Mortgage Introducer decided to find out.
find out more about this weeks industry news
David Mead, managing director of Flexible-mortgage.net: “I know that HBOS was retaining a lot more business because of the retention strategy, but the trouble was that it took its eye off the ball and just wasn’t competitive for new business. It sharpened rates up in the second quarter so it will be claiming business back but no independent broker could have recommended a Halifax product at the start of the year. A lot of our business went to Abbey, while I think C&G also had a strong quarter.”
Michael Brill, director of Baronworth Investment Services: “If the client was with the Halifax already, we’ve had to send them elsewhere as the transfer rate has not been good. Bank of Scotland did have some good rates at the start of the year and some of our business went there, along with Bank of Ireland and Abbey. However, in the main, most of our business so far this year has gone through either Abbey or Halifax.”
download our news ticker
Darren Pescod, managing director for The Mortgage Broker Ltd: “We’ve definitely seen a drop off in business from Halifax and Bank of Scotland. Halifax has lost its way on service levels and, in the first quarter, Bank of Scotland wasn’t there on products and pricing. Out of the HBOS stable, I wouldn’t include BM Solutions, as it is still there competing on pricing and service.
“Abbey and Northern Rock have taken a fair chunk of HBOS’ business from us. For Northern Rock, it has been on criteria and its fast-track service. Halifax and Abbey seem to compete on price and have similar rates. With Halifax’s service at head office falling by the wayside, when you have two similar products from two lenders, you go with the one with better service. With similar business, Abbey will win hands down.”
catch up on the industry buzz
Stephen Brown, senior technical director at Moneyquest: “We work very closely with HBOS and it told us the reason for the drop was that a significant number of its customers had come to the end of their mortgages. Retention hasn’t worked, but there were still a lot of customers for whom a HBOS deal was best. But for many, if there was a better deal, we had to move them. Around 30 per cent of our business spread goes to the HBOS brand and this year, we have been recommending some for Halifax but a lot for BM Solutions and Bank of Scotland.”
Jason Richardson, director of YooToo Financial Services: “Most of what was going through was buy-to-let business so a couple went through the HBOS group. But a lot of lenders were just as competitive as HBOS. Woolwich took a lot of my business, as it had some good exclusive rates through mortgage clubs. Knowing HBOS though, it’ll put out a couple of stonking rates which will recoup all the business it lost earlier in the year.”
register for the next forum
