Brokers have criticised NatWest for offering a sub-5 per cent mortgage rate direct to consumers which has not been made available to brokers.
NatWest was accused of offering a sub-5 per cent 60 per cent LTV 5-year fixed mortgage rate direct to consumers - available online on an execution-only basis - but this rate was not available via brokers.
Charwin Private Clients director, Ranald Mitchell, said: “They send their representatives around our business with the message, ‘we value brokers’, and then continue to undermine the crucial service brokers offer with cheaper rates directly.”
He was not alone in this criticism as Lodestone managing director, Craig Fish, stated that he thought the industry had “moved beyond this underhanded tactic nowadays”.
He additionally stated NatWest should “know better” and said that “dual pricing has to stop”.
Self Employed Mortgage Hub founder, Graham Cox was similarly critical, stating: “Dual pricing should be banned.”
He explained the practice is “unethical”, not just for brokers but for consumers as well, who should reasonably be able to expect the rates a broker sources to be the “best available in the market”.
Cox added this was “just another example of banks acting with impunity” and argued it’s “high time” the regulator took action.
A similar sentiment was shared by Shaw Financial Services founder, Lewis Shaw, who stated: “The FCA wants consumers to receive advice when taking out a massive amount of debt linked to their most valuable asset for over 25 years.
“So how does this fit with consumer duty and preventing foreseeable harm when many consumers are unaware of the implications and most won’t truly understand the protections they’re giving up?”
Advantage Financial Solutions director, Steven Morris, described the practice as a “phenomenally short-sighted tactic”.
Morris additionally pointed out that 75 per cent of NatWest’s business during the recent market boom was provided by brokers.
The Mortgage Expert mortgage expert, Darryl Dhoffer made a similar point stating: “Lenders need to remember that nearly 90 per cent of all mortgage business written is by intermediaries.”
He additionally stated that, while he appreciates that lenders have loan books to fill, dual pricing is “not acceptable”.
A NatWest spokesperson said: “We offer different products and services through different channels, with clearly signposted customer guidance no matter which route they choose to take.
“We have cut our broker rates a number of times in recent weeks and the best available rate can vary between our direct and intermediary channels.”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
