Whilst the global cr4edit crunch has hit all sectors of the mortgage industry extremely hard over recent months the news has been dominated by stories about how lenders and consumers have really suffered as a result of the effects of the credit squeeze. Lenders have found it increasingly hard to get finance for their mortgage lending operations, and therefore have had to tighten credit conditions, increase the cost of borrowing, and remove various mortgage products from the shelves. This has, of course, impacted on consumers, who have found it increasingly difficult to get an affordable mortgage due to lack of accessibility, availability, and affordability.

However, there is also another industry group that has suffered as a result of the global credit crunch, and this is mortgage intermediaries such as brokers. In the past well over half of mortgage deals have been generated through brokers, but lenders are now cutting back on the deals that they offer through brokers, and are instead trying to entice customers to apply directly through the lender by offering exclusive deals that are not available through brokers or by lowering the rate on deals for direct applicants.

This move has caused concern for mortgage intermediaries and the Association of Mortgage Intermediaries has filed a complaint with the Financial Services Authority over the matter. However, official from the FSA state that the fact that lenders are offering some deals directly is not necessarily bad news for the consumer. The FSA said: “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.”

Recent additions:

• Slump in lending levels fuelled by credit crunch
• Struggle continues for first time buyers
• Many lenders ignore base rate cuts
• Mortgage approvals slumped in March
• Credit crunch means slump in mortgage lending

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