At The Mortgage and Protection Event in Salford yesterday, Mason asked the audience: “Have you seen the three-year PT? So, the story behind this is a really positive [one] because this was all about trying to help people who are going to experience payment shock and we had to quickly implement something. We were talking to government about the help we were giving as well.”
Mason said the bank needed to trial and implement measures quickly to show the working group how it would demonstrably work.
At the start of October, brokers began reporting to Mortgage Solutions that the bank was offering a competitive, three-year transfer product for existing customers coming to the end of their deal, direct-only, in addition to its two, five and 10-year term deals.
Mason added: “Unfortunately, in the translation through the pricing process and the implementation back in the shop, it missed the point and I think it created problems in the broker space.”
Mason said: “We had a direct product available that was visible to people who qualified through certain criteria. And two things happened. Number one, it wasn’t available in the broker market – big problem for me and for you,” he said explaining to chairperson, Clare Beardmore, director of L&G Mortgage Club.
“Number two, the criteria was too broad. So too many customers of yours could qualify for that product, which inevitably creates conflicts,” he explained.
“We got so much feedback understandably from the market, which was predictable.”
He said in response to this broker feedback, Lloyds launched a three-year fixed product transfer through both direct and intermediary channels, two days ago (at time of writing).
Mason stressed the power of broker feedback, saying “It’s well-priced. We want to listen.”
The Mortgage and Protection Event continues in Birmingham today, continuing on to Southampton and London next week. Register here for your free delegate pass.
