Last week, Mortgage Solutions exclusively revealed online that branch staff at HSBC were discussing its mortgages with its own internet current account customers, who had requested authentication of their online statements in order to apply for a Woolwich mortgage.
An HSBC spokesperson defended the practice, saying it was acceptable for HSBC branch staff to discuss mortgage options with its own customers.
He added that it was good business sense to ask its customers whether they have considered HSBC mortgages.
Although several brokers contacted Mortgage Solutions to say they were angered by the practice, others said they could understand HSBC’s view.
Fahim Antoniades, group director at Mortgage Centre IFA, said he hoped that HSBC branch advisers clearly stated that they were offering tied advice.
He added: “If HSBC advisers are sharp enough to spot this opportunity, they are being entrepreneurial. Intermediaries will not like it because there is the potential for lost business, but it is acceptable as long as HSBC advisers explains that they are not giving whole of market advice.”
David Hollingworth, communications manager at London & Country, said it was frustrating for brokers when they were caught in the middle between the policies of different lenders.
He added: “Ultimately, brokers just want to advance mortgage applications, and a stalemate between lenders does not help them. In this particular case, it poses a problem when Woolwich has a policy which asks for an applicant to have a stamp of their online statements and HSBC does not want to do this without discussing its mortgages.”
Jonathan Cornell, communications manager at First Action Finance, pointed out that HSBC was failing to treat its own customers fairly.
He added: “It is acceptable for banks to market their services to their customers, but it is unfair if they seem to be putting a block on authenticating customers’ online statements. It makes it very difficult for them to apply for mortgages from other banks.”
David Finlay, intermediary business director at Woolwich, said he hoped that Woolwich’s products and proposition would stand up to the HSBC ‘test’.
He added: “We would rely on the fact that our applicant would choose our product after talking to the HSBC adviser. HSBC can talk to its customers, but if it caused us a significant problem, we would have a conversation.”
