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Pre-MMR rate war could squeeze out brokers, warns LSL

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  • 09/09/2013
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Pre-MMR rate war could squeeze out brokers, warns LSL
LSL’s director of mortgage services David Copland has warned that brokers could be marginalised by lenders if a high street rate war occurs before the implementation of the Mortgage Market Review.

Last week HSBC announced plans to price match all first-time buyer rates offered by other high street lenders and there are fears such a move could spark a rate war through direct channels.

Copland said that dual pricing could be re-introduced by some lenders trying to match HSBC on the high street and lend more through the direct channels ahead of the regulation changes next April.

“Because of the pressure on the high street we could see some lenders moving to offer better rates in their branches to try and get close to HSBC,” he told Mortgage Solutions.

“Direct channels have been losing market share and on the high street it’s all about rate, but it depends how aggressive the high street rate war gets.

“They’ll want to go for it until MMR and get as much business on their books.”

Brokers had been gaining market share in recent months and Copland added that a swing back towards direct sales would only last until MMR implementation.

“I think any dual pricing would most likely be in place until MMR and then the market will come back to intermediaries once the regulations are in place,” he said.

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