John Charcol highlights moral issue for mortgage intermediaries

Date:Tuesday 23rd November 2010
Author: Susanna Kavka

Mortgage intermediaries have to handle a moral issue when they are faced with dual pricing, according to a representative from John Charcol.

Ray Boulger, senior technical manager at the firm, made his comments to Coventry Building Society, after it found 73 per cent of such mortgage professionals want to either offer all direct products or see an end to dual pricing between business channels.

He explained that it is morally very difficult for an adviser to recommend a product to a customer if they know it will feature better terms if purchased direct.

"These results from Coventry's survey are unsurprising, as dual pricing has been a major bugbear of intermediaries for the last couple of years," said Mr Boulger.

In his opinion, Coventry Building Society has done well by pledging not to dual price its home finance options for intermediaries.

This month, Mr Boulger spoke to and questioned whether changes in the mortgage market mean that it may be time to consider switching to a fixed-rate deal.