Tracie Pearce, head of mortgages in the UK for HSBC, said the bank will make further distributor announcements in the fourth quarter and expects to be serving 50% of the intermediary market by the end of 2016.
In April, Mortgage Solutions reported exclusively that HSBC added Springtide Capital, Alexander Hall and SPF Private Clients to its distribution list, joining existing partners London and Country and Countrywide.
HSBC, which pays broker procuration fees at a rate of 40 bps for networks and 38 bps for mortgage clubs, said it was possible that it would explore a retention model in the future.
The bank is also planning an updated online platform for brokers next year. Brokers can currently submit and track applications online and have direct access to HSBC’s underwriting team.
Pearce said: “Brokers are an important part of the housing market, providing a valuable service to home-buyers and remortgagors alike.
“Getting a mortgage is often thought as a stressful process but it doesn’t have to be, particularly when you have a helping hand from independent experts who can advise you on the best deals that suit your personal circumstances. The addition of four new brokers will provide greater choice of deals for customers.”
Peter Brodnicki, CEO, Mortgage Advice Bureau said the HSBC move to ’embrace the broker community’ recognises the position the industry has carved out for itself.
“Around seven in every ten mortgages now being arranged by the intermediary channel,” said Brodnicki.
“HSBC has consistently offered some of the most competitive mortgage products to customers directly, featuring regularly in best buy tables across fixed rates, base rate tracker and discounted variable rates. Their decision to extend their distribution via the intermediary channel is recognition of the value that customers place in the advice and service that the broker community now plays in the UK mortgage market.”
Sally Laker, managing director of Mortgage Intelligence said: “Mortgage Intelligence is delighted to be a part of the wider distribution strategy for HSBC. It is a very powerful brand to be working with, and great news for the intermediary sector.”