The value of exclusive deals through mortgage clubs and networks was called into question at last week’s Mortgage Solutions Power Hour.
Nick Baxter, managing director of Mortgage Promotions, urged lenders that belong to panels to look closely at their exclusive deals to ensure borrowers are not being disadvantaged.
He said: ‘Sadly not all these exclusives are based on a better product for the consumer. Many are designed to increase the cost for the consumer just to provide a bigger fee for the introducer.’
Sean Hornsby, sales and marketing director at Mortgage 2000, suggested there are far too many exclusive products in the market.
‘I think, through bulk buying, lenders are under pressure to offer exclusive products to a number of players. I think we make far too much of exclusives. All they are is a marketing tool. Most don’t sell,’ he said.
Andy Young, head of marketing at Misys Mortgage Services, agreed that exclusives in the ‘vanilla’ sector of the market are difficult to sell because they are usually only competitive on the day they are launched.
‘We have found exclusives in the niche areas to be more successful. We wouldn’t influence where that business is ultimately placed because many intermediaries now use sourcing systems. It is becoming difficult to sell a second-rate mortgage with a higher procuration fee when there are clearly a dozen other better mortgages that meet the client’s needs,’ he said.
Sally Laker, managing director of Mortgage Intelligence, said: ‘We have had huge success with exclusives and I do not agree they are a non-event. I think everyone’s business model is different and we have been successful in that. Now it is very much niche products that we have exclusives on.’
l The full version of Power Hour will appear in the 21 October issue of Mortgage Solutions.