Brokers back in from the cold
According to Moneyfacts, prior to the banking crisis, mortgage deals offered through brokers were not that different and in many instances more competitive than those offered through branches. But, with the credit crunch came dual pricing and some lenders started offering better rates direct to their customer.
But, for the first time in the last two years, brokers are finally getting back to a level playing field, despite still having access to a limited proportion of the product market.
Darren Cook, spokesperson for Moneyfacts.co.uk commented: “Like many others, mortgage brokers have probably felt one of the biggest impacts of the banking crisis and they have also had to deal with an added frustration of dual pricing.
“At the height of the crisis, many mortgage providers preferred to offer the better deals to their direct customers, which enabled them to turn off the taps to new lending very quickly.
“The proportion of the market that brokers have access to may have fallen, but it looks like they are starting to compete evenly on price.
“Brokers always have and always will form an integral part of a healthy mortgage market, so we hope that dual pricing fades away soon and we return to a level playing field as quickly as possible.”