Britannia takes away broker business

Ramesh Sharma

April 8, 2006

Britannia has added to its fixed rate range with the addition of a three-year fixed rate product at 4.49 per cent and a two-year fixed at 4.34 per cent. Both are available up to 95 per cent loan-to-value (LTV) and include a £399 arrangement fee and a £100 administration fee. Both mortgages are available to new and existing borrowers.

James Cotton, mortgage specialist at London & Country, said the fixed rates available from Britannia would be popular. “The Britannia two-year fixed deal is very good. At 4.34 per cent, it is undercutting both Halifax and Nationwide, who are 4.39 per cent,” he said. “It is a shame that Britannia only deals direct and cuts out the broker.”

Ray Boulger, senior technical manager at John Charcol, added: “Britannia’s two and three-year fixes represent good value for money. But for remortgaging purposes, the Halifax and Nationwide offers are still the best.”

“Britannia seems to be targeting its offers on becoming best-buys within the market, but it has an interesting policy of lowering or upping the rates sharply. Its deals are either in the market leading range, or completely out of it,” he added.

Responding to the accusations Lise Bulloch, PR manager at Britannia, said: “We deal with brokers but don’t offer a procuration fee and this seems to be a popular way of doing business.”

She went on to refute claims Britannia was ‘sharp’ with its rate changes: “We follow the mortgage and swap rate markets when we have to change our rates and we try to follow the market.”

Sign up to our daily email