Mortgage dual-pricing disappearing - AMI

The number of brokers unable to assist clients because lenders are offering better deals direct is decreasing, according to the Association of Mortgage Intermediaries (AMI).

The Association's latest mortgage intermediary barometer suggests a third (33%) now feel they are unable to offer their clients the best deal, down from half (48%) six months ago.

The results are a welcome boost to the sector and follow a recent broker survey by CherryFind suggesting "significant" numbers of consumers were losing out by opting to go direct rather than seeking impartial advice from professional advisers.

AMI director general Chris Cummings says it is "extremely positive" brokers again have access to the best products, and predicts the downward trend will continue.

"It must always be remembered that consumers want help and advice to find the most suitable mortgage for them," he says. "They put 'service' as the number one reason to use an intermediary, not 'rate'.

"Intermediaries have a positive future because we provide the service that consumers value so highly."

The survey results represent a marked turnaround from earlier in the year when dual-pricing was considered by many brokers as one of the most damaging practices in the sector.

In May, IFAonline began campaigning for the FSA to level the playing field by preventing lenders offering preferential rates to customer in their branch.

Dozens of intermediaries expressed concern that consumers were not receiving independent advice at a time when the mortgage market was becoming increasingly difficult to navigate.

However, the FSA says pricing and distribution are commercial matters for banks, and says intermediaries had not right to offer the same rates that were available to direct customers.

Elsewhere in the AMI study, the number of brokers who expect to see fewer lenders operating in the intermediary market over the next three months has gone up from half (50%) to three quarters (73%).

Elsewhere, 'Maximum LTV reached' dominated the reasons for brokers being unable to assist both purchase and remortgage clients - up from 38% in June to 55% in September as house prices fell in value.