Mixed reaction for AfI’s new broker division

The Associate Accounts division, which will operate alongside and in a similar way to Abbey’s key accounts division, will be made up of 10 ­brokerages who will be asked to agree commercial terms with AfI.

Adrian Whittaker, key accounts director at AfI, said the goal of the division was to offer commercial opportunities to intermediaries who are not associated with an Abbey key account.

He added: “This is about expanding our level of involvement in the industry and in those brokers who have a mutual interest in working more closely with us. In developing this proposition, we hope to engage more closely with companies to ensure we are doing all we can to support their business strategy.”

David Sheppard, managing director of Perception Finance, said the new division was an easy way for AfI to manage volumes and focus on quality of mortgages.

He added: “By separating brokers into specific groups, AfI can control the volume of distribution that is coming in and better manage the quality of business which it receives. Santander seems to be focused on quality not quantity and this may allow it to receive information on the business which is received from certain brokers.”

Daniel Clayden, director at Clayden Associates, said creating divisions could create a precedent and open the door for a form of preferential treatment for some brokers at the expense of others.

He said: “It sounds like a good deal for the top 10 introducers, but other brokers will suffer.

Brokers not only have to compete with direct deals, but now they have to deal with special deals going to other brokers. AfI is probably trying to get brokers onside, but there will be smaller brokers who will lose out.”