Cahoot cuts out brokers with direct mortgage deals

Ramesh Sharma

June 1, 2004

After Mortgage Introducer exclusively revealed last week ING Direct’s planned launch in the mortgage market next year, Cahoot has announced its arrival with the launch of a two-year tracker and two-year fixed-rate product range in addition to its fixed plus mortgages.

Launched in conjunction with parent company Abbey, Cahoot’s product range became available on Friday 7 October. However, the lender has already been criticised for only offering its product range direct over the phone to customers.

Kim Barrett, proprietor at KS Barrett & Associates, was certain that every mortgage should be undertaken with advice from independent advisers. He said: “Mortgages are a regulated field, which suggests that they are a complex area for the ‘ordinary person’ to understand. Therefore the need for advice, available from brokers, should be welcomed.”

Cahoot’s two-year tracker mortgage is available at 4.34 and 4.54 per cent, up to 95 per cent LTV. A booking fee of £699 exists for the 4.34 per cent offer, with a £449 fee for the 4.54 per cent deal.

Its fixed rate at 4.49 and 4.69 per cent is offered up to 95 per cent LTV. Its flexible plus range at 4.90 per cent has a booking fee of £699, while its 5.25 per cent has a £149 booking fee. Both are offered up to 90 per cent LTV.

Defending the lender’s decision to only offer the products direct, Tracy North, acting senior media relations executive at Abbey, said: “Cahoot has launched these products as a trial to see how it goes. When the trial run has been done we will look at other ways to make the product available, such as online and through intermediaries.”

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