Intermediaries have called upon the lender to end dual pricing and help them to support their clients during the Covid-19 outbreak
Mortgage brokers have urged Nationwide to offer its direct-only 90% and 95% loan to value products to the intermediary market, amid a lack of other low deposit options.
Intermediaries have said they are losing clients to the high street giant because it is one of the lenders offering mortgages to borrowers with a small deposit, but only through its branch network.
They have called upon the lender to end dual pricing and help them to support their clients during the virus outbreak.
Mortgage broker Rachel Dixon of RH Dixon researched the best mortgage as per their needs and completed an agreement in principle.
As they began to proceed with her recommendation, the high loan to value deal had been removed from the market.
Her clients didn’t meet HSBC’s affordability criteria, which left her with one option, to recommend them to go directly to Nationwide for their mortgage.
She said: I have supported Nationwide a lot over the years, and this situation is fairly frustrating. It is only right they show us the same support.
Nationwide withdrew its lending above 75% loan to value (LTV) through intermediaries on 30 March. The society raised lending back up to 85% within less than a month.
Mortgages at 95% loan to value (LTV) continue to be available through its branch network during the Covid-19 outbreak.
However, some brokers say they were not told by the society about its dual pricing and only heard it as other lenders pulled out of the market.
Accord, Virgin Money, Clydesdale, and Furness Building Society have all withdrawn their 90% loan to value ranges this week, which left HSBC and a few small building societies to serve low deposit borrowers through the intermediary market.
George Williamson, director of Mortgage Advice Brokerage, said he had heard from other brokers that they were losing clients to Nationwide’s direct proposition, but no one had been told directly by the business development manager (BDM) that the society had started dual pricing.
He said: It just makes us look stupid to our clients when we say we can’t help because there isn’t anyone lending to borrowers with a five% deposit, and then they come back and tell you they can go straight to Nationwide.
Nick Morrey, product technical director, John Charcol, added: Nationwide’s 90% plus range is a step in the right direction.
The society is serving its members by offering something that the rest of the market is not. But the sooner Nationwide opens up to all channels, and other lenders return to this market, the better.
A Nationwide spokesman said: We are working on a solution which offers a consistent loan to value approach across all channels and will be in a position to update our proposition soon.
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