Speaking at The Mortgage and Protection Event, the lender noted that execution-only would only ever be a very small part of the new mortgage market.
Lloyds Banking Group national account manager intermediary Jonathan Buckle (pictured) said: “We were slightly surprised at a few elements in the [FCA] report and that was one of them.
“I do feel we have the knowledge and expertise in the mortgage market to offer execution-only but I think we’re absolutely aware it is only a small minority of the market that would have that.
“I think there is room in the market for execution-only, but I think we do not really see that as being a huge part no matter how many times people go through that experience of remortgaging,” he added.
(Panel l to r: Mortgage Advice Bureau protection proposition director Andy Walton; Legal & General Insurance market development manager Steve Fallon; NatWest Intermediary Solutions senior corporate account manager David Hunter; Lloyds Banking Group national account manager intermediary Jonathan Buckle.)
Product transfer execution-only
Buckle was further pressed about execution-only in the product transfer market and whether this was a concern.
“We are very confident in our systems. We’ve got over 11 years’ experience in product transfers now,” he continued.
“We offer that to the broker market, we’ve supported that and that’s been very beneficial to us to do that.
“If customers choose to do that the process is there to support them and to make them appreciate there are other choices out there, that they do need to consider their own personal circumstances.
“But the business that is coming back through that process, we’re very comfortable with that it is right for the customer,” he added.
Brokers guilty too
Legal & General Mortgage director Kevin Roberts, who was chairing the session, added that brokers needed to take some responsibility for the growth in execution-only.
“Are we letting customers go through that journey without the right advice?” he said.
“We can’t blame the lenders – they may want to encourage it, but we are equally guilty as a broker community for letting that happen.”