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Co-op Bank ditches retail mortgages to focus on Platform broker offering

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  • 07/02/2018
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Co-op Bank ditches retail mortgages to focus on Platform broker offering
Co-op Bank is to close its doors to most direct mortgage borrowers from Friday, with new lending available through its Platform intermediary arm only.

 

The bank will focus its efforts on Platform and offering more competitive deals through brokers following the changes.

The shift ensures efforts at the lender target the right place where demand is growing, a spokeswoman for the bank said.

All mortgage in principles, decision in principles and applications in process with the bank before February 9 2018 are to be honoured and completed in line with the terms and conditions of the offers.

Existing retail customers will still be able to manage their mortgage with the bank and apply direct for products.

A Co-op Bank spokeswoman said: “We’ve already announced two interest rate reductions on some Platform mortgage products in 2018 and we’re now focused on keeping our products competitive and working with our broker partners to find the best deals for their clients.”

Platform currently offers borrowers at 90% loan to value (LTV) a two-year fixed-rate at 1.84% with a £999 fee, as well as a five-year fix at 2.39% with a £1,499 fee – both deals come with £250 cashback and a free standard valuation.

 

More lenders could turn broker-only

Commentators have suggested that more lenders should axe their direct offerings.

Lenders lower their risk by using brokers, according to Nathan Stacey, Bristol-based broker and co-owner of Continuum.

He said: “Mortgages are more specialist than ever, from affordability to lending criteria.”

Adviser Robin Wood added: “I wouldn’t be surprised if many other lenders follow – it spreads the risk and workload.

“Customers benefit from advice and support, often at little or no additional cost – especially from an independent broker or IFA.”

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