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Mortgages and dual pricing

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 04. November 2022

Looking to speak to mortgage brokers about dual pricing. 

  1. Are you seeing more lenders offering deals to customers direct and not offering brokers the same rates?
  2. Are there particular types of lenders that do this? 
  3. Why do you think lenders may be doing this now?
  4. Do you think it could become more common? 

6 responses from the Newspage community

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Jamie Lennox
Director at Dimora Mortgages
We're starting to see more instances where lenders are dual pricing on product transfer/rate switches where customers are approaching the end of their fixed deal. Ultimately they are luring the customer to go direct, often on a non-advised basis and cutting off the hand that feeds them, namely mortgage brokers. By allowing the client to complete a rate switch directly on a non-advice basis, there is no comeback on the suitability of the product on the bank and they've also cut out having to pay brokers to complete the required work with personalised advice.
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Mike Staton
Director at Staton Mortgages
A few lenders have started to do this, which really is rediculous. Brokers who have been the backbone of the mortgage industry are being thrown under the bus by some lenders who will be crying out for brokers help once all of this has blown over. Unfortunately, in an industry full of greed and selfishness, its easy to forget those that put in all the hard work during the pandemic. I hope brokers remember the lenders who are freezing them out of the market today in order to keep a client or two.
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Dariusz Karpowicz
Director at Albion Financial Advice
Current mortgage turmoil only intensified dual pricing, especially with high-street lenders. They also offer product fix terms directly that are not available to brokers. This is not surprising and happened in the past as well. Lenders say they need brokers but often have strategies to convince the customer to go direct.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
I've not really seen it happen en masse but it is a bit of an underhand move. It saddens me when any lender hangs brokers out to dry when it's convenient to them then wants to be our friend come awards season.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
Dual pricing is a nasty, horrible practice that shows some lenders' arrogance towards the brokers they then still expect to support them. We've not seen it on any large scale for a long time, thankfully, and I hope it's something that remains a historical issue, and that new bankers are taught under the heading "how not to treat your business partners".
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
Fortunatly I havent personally come across this, but it seems to be a very good way for lenders to ruin the relationships with brokers, and lenders that are already stretched will end up even busier and perform even worse than now.