by Gary Webber
17. August 2009 18:47
Cheltenham & Gloucester, one of the lenders in the huge Lloyds Banking Group stable, has just shuffled its rates - and brought an end to 'dual pricing' in the process.
The rates update is nothing spectacular in itself - only the 3.99% tracker mortgage looks like a possible best buy - but the noteworthy aspect of this change is that C&G's rates are now the same for both mortgage advisers and direct applicants.
'Dual pricing', the habit of lenders offering special deals to applicants in branch or via the lender's website, is a practice loathed by intermediaries (advisers, IFAs) as it puts them in a no-win situation. They have to offer customers best advice, meaning that with dual pricing they feel the obligation to tell clients to pop down the road themselves, earning no fee in the process. Advisers could charge an upfront fee for this kind of advice, but they fear this will turn customers away.
It's probably good that C&G have taken this step, as it helps clear up a confusing marketplace for applicants, although we're not sure all banks will do the same. Perhaps some lenders will stay friendly to intermediaries, while others (like, say, HSBC) will aggressively court direct business.
By all means let us know whether you think dual pricing favours the banks or the applicants... though we're sure not many of you will say it favours advisers!
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