What is a direct deal

amnblog

The FCA say brokers who do not consider 'direct deals' need to make the customer aware of this.

This is all very well - but do you 'CUSTOMERS' know what 'direct deals' are?

If I told you I do not advise on direct deals would you really understand what I am saying?

Feedback would be appreciated.

Let_Us_See

amnblog wrote: »

The FCA say brokers who do not consider 'direct deals' need to make the customer aware of this.
This is all very well - but do you 'CUSTOMERS' know what 'direct deals' are? If I told you I do not advise on direct deals would you really understand what I am saying? Feedback would be appreciated.

I think you need to clarify "direct" meaning. Almost all mortgage providers offer a direct to lender and adviser route of submitting applications. However, FCA (MMR) regulation is aimed at Direct Only providers (such as HSBC), where there is no broker route for submitting applications.

amnblog

Let_Us_See wrote: »

I think you need to clarify "direct" meaning. Almost all mortgage providers offer a direct to lender and adviser route of submitting applications. However, FCA (MMR) regulation is aimed at Direct Only providers (such as HSBC), where there is no broker route for submitting applications.

You and I know what they are:

But what do the customers understand by what the FCA refer to as 'direct deals'?

If the terms means nothing to customers, there is no value in our using it in our disclosure.

ACG

Personally i will be saying i do not offer deals that are available by only going direct to the lender.

Occasionally i have had people ask who they are and i have been open and said PO/Co-op/HSBC are the main ones.

At the end of the day, im sat infront of people who want the help and support of a broker OR cant go to a "normal" lender so i have nothing to hide.

Let_Us_See

It is certainly not about hiding anything, just ensuring clients know the difference between a direct application (to a lender without using the assistance of a broker) and a direct only lender, who will not under any circumstances accept an application from a broker.

Without understanding the difference the OP request would be meaningless.

amnblog

Some input from' lay people' would be most useful.

So that we brokers understand what you understand.

Let_Us_See

amnblog wrote: »

Some input from' lay people' would be most useful.

So that we brokers understand what you understand.

Or don't understand.;)

NouZid

I'm researching mortgages and house buying in anticipation of being able to buy my first home in the near future.
If I had to guess what a direct deal is, I would say it is where a customer applies to the lender directly, not via an intermediary. I know most lenders accept applications directly or via a broker, but a handful don't. The concept of your question confuses me however, if these lenders don't accept business from an intermediary anyway, why do you need to tell people that? Is it just in case some may not be aware that even whole of the market brokers don't have access to these lenders?
Or is there another aspect of brokers/advisers' business where you'd find customers the best deal for their circumstances and let them apply directly afterwards? I didn't think this forms part of what you do!

shaniannie

Let_Us_See wrote: »

It is certainly not about hiding anything, just ensuring clients know the difference between a direct application (to a lender without using the assistance of a broker) and a direct only lender, who will not under any circumstances accept an application from a broker.

Without understanding the difference the OP request would be meaningless.

As a "lay person" I didn't have a clue what you were on about until I read the quoted post.

Does that help answer your question?

Yorkie1

Initially I thought "direct deals" meant those lenders who only accept applications from borrowers, i.e. as per ACG's reply.

It hadn't occurred to me that there might be an alternative interpretation i.e. as referenced by Let Us See in post #5.

What I'm not sure about now, is whether you're required to tell me that (e.g.) Nationwide has a mortgage which would be suitable for my needs and that I can apply straight to them without paying brokers' fees, or through the broker.

Hmmm.