The Financial Services Authority's chief executive says dual pricing by lenders does not contravene the principles of treating customers fairly.

Hector Sants made the assertion in a speech at The Building Societies' Annual Conference in Manchester.

He says: "If certain lenders decide to offer their direct customers cheaper deals, we do not see that customers’ best interests would be served by preventing this.

“However, we believe that a healthy market is one where consumers have a choice in how they purchase a mortgage, either direct or via an intermediary who can shop around and advise the customer to help get the right deal."

He adds: "We hope that the current market developments do not make it harder and more expensive for customers to get advice on what is one of the most important decisions of their lives.”