Anger at HSBC 'whole of market' link with Charcol

Intermediaries have voiced their frustration after HSBC launched a pilot scheme offering "impartial" mortgage advice in-branch.

The banking giant has teamed up with John Charcol consultants to offer the Mortgage Matcher service.

It will charge customers £150 to speak to a Mortgage Matcher consultant, who will offer advice on the best mortgage deals available, including those from rival lenders.

Customers who go on to take out a home loan from HSBC or First Direct, its online banking brand, will still be charged the fee.

HSBC says the service is aimed at customers who do not currently have an HSBC mortgage or who need the type of mortgage the banking giant does not offer.

The seven month pilot went live yesterday at one of the bank's Cambridge branches and will be rolled out to 19 other branches over the next three months. A decision will then be taken about whether to take the scheme nationwide.

Broker forum Cherry was flooded with comments from intermediaries worried other banks could follow HSBC's lead, with many suggesting the move represents a 'conflict of interest'.

According to one poster on the forum, the decision could be the "death of the mortgage broker" because the banks could have total control of the market.

"Now is the time for all our representatives to join together and make noises about what is happening," the poster writes. "Rest assured all the other banks will be watching and if it works they will all follow suit."

However, other brokers said they see it as an admittance from the banks they have a flawed system.

"Co-op and Lloyds have been doing this for ages - referring to Mortgage Force," one said. "To me, I see this as the banks admitting the client is better served seeing an independent broker."

jamie.obertelli@incisivemedia.com