Amber embraces Hanley to deliver DIP

Amber Homeloans has announced a partnership with Hanley Economic Building Society whereby branch advisers will use the intermediary lender's decision in principle (DIP) system to offer Amber products to customers.

Mike Perry, associate director of sales and marketing at Amber, said the partnership meant rather than turning away business that fell outside Hanley's criteria, the mutual would have access to Amber's product range and could use its DIP system to place business with the lender. The building society will receive a procuration fee for each case processed. Perry said: "We are working with several other building societies and are hoping to announce further partnerships over the coming weeks."

Commenting, Alan Lakey, partner at Highclere Financial Services, said such partnerships made sense when lenders were having to decline business that fell outside their criteria. He said: "Common sense would say they would refer that person to an IFA or a qualified mortgage broker but I suppose there is nothing in it for them. So this is the next best option."

Amber also revealed it would remove higher lending charges (HLCs) from its core products from 6 November. Its mortgage products up to 90% loan to value (LTV) will also be HLC free.

Perry said even though its rates had been competitive, it had been losing out to lenders who had removed the HLC and put in arrangement fees of 1% to 1.25%. "We have taken the decision to take away the HLC but we are not going to put in a percentage application fee, we will just have a flat arrangement fee of £799," he added.