Brokers unhappy about lack of access to mortgage deals

Over recent months the chaos caused in the financial markets by the global credit crunch has seen many changes take place, particularly in the mortgage sector, where deals have been taken off the shelves, lending criteria has been tightened, and interest rates have been hiked up, as well as deposit requirements and arrangement fees increasing.

Another change that has taken place is that many lenders have started to offer mortgage deals direct to consumers rather than through brokers, with consumers often able to get a better deal by going directly through the lender rather than through a broker. This is something that has concerned the broker industry, and a complaint has been filed by the Association of Mortgage Intermediaries.

Brokers are unhappy because some consumers are now getting a better deal by going directly through the lender, and in some cases the lender is not even making certain deals available through a broker. However, in response to the complaint the Financial Services Authority stated: “It is a commercial decision for a lender whether they want to offer products directly to the public or via a broker. Anyone dealing with consumers should ensure that consumers are treated fairly.”