Clydesdale  

Clydesdale denies it is bypassing brokers

Clydesdale denies it is bypassing brokers

Clydesdale has played down suggestions it has been bypassing brokers by offering customers an arrangement fee discount on their mortgage renewal if they go direct.

Reports surfaced on Friday (12 May) that the lender had been contacting fixed rate clients offering the deal up to three months before the end of their mortgage term, and that brokers were feeling “cut out of the loop” by the practice.

But a spokesperson for Clydesdale said the discount - which can vary and is not set at £250 - is offered to customers regardless of whether they choose to go through a broker or direct.

The spokesperson added most lenders offer such discounts and that it had been Clydesdale’s standard practice for several years.

The bank issued a statement saying: "We are focused on providing the very best customer experience, and as such we contact all of our mortgage customers before the end of their fixed rate.

"We do this to provide a reminder and to highlight switching options. 

“We offer existing customers a reduction in arrangement fees and the ability to switch their product without penalty up to three months before their current rate expires, whether they choose to approach us directly or go through a broker. 

“This ensures that our customers are fully armed with the information they need to make the right decisions for them."

simon.allin@ft.com