The level of fee charged by packagers who receive second charge loan referrals from mortgage brokers has been the subject of controversy but Cottle and head of intermediary distribution at Shawbrook Bank Caroline Mirakian said this was a thing of the past.
Speaking on Specialist Lending Solutions Television, Cottle said: “Fees are where they are because they found their equilibrium. Otherwise someone else would be charging a slightly lower fee or rate. Clients would vote with their feet and find a different packager.”
He added: “Capitalism always finds its lowest acceptable cost. If there was some kind of conspiracy in the marketplace where fees were kept artificially high then I’m yet to know about it.”
Mirakian added that although Shawbrook did not monitor the fees its packagers charged, each specialist distributor is put through a due diligence process before they are permitted to join the panel.
[For intermediaries only]