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Mortgage providers insistent on "cutting intermediaries out of the loop" will regret their policies when the housing market improves, IFAs have threatened.

High street banks and building societies are increasingly offering cut rate deals in branches directly to customers, which they will not negotiate through financial advisers.

But according to two senior IFAs this "short-sighted strategy" will cost the companies during times of higher demand for mortgages when they struggle to provide higher levels of services in house.

And they went on to warn a number of advisers' response to this strategy will be to stop using certain providers, whenever possible, when the market comes back around.

Jock Cassidy, chief IFA at Middlesex-based Ashley Law hit out at providers, naming Abbey and Direct Line as principle culprits.

"They are effectively trying to cut the intermediaries out of the loop. They must think we have short memories," he said.

"All the major players are at it. But 70 per cent of their business traditionally comes through intermediaries so now they are biting the hands that have fed them in the past and they may need to do so again.

"At the moment we are pretty powerless. But in the future if they have got the option of not using those lenders that have not helped them in this crisis, intermediaries will not.

"It may well come back to bite them in the future. If lenders do want to adapt their strategy of cutting intermediaries out altogether then they would have to increase investment in in-branch facilities which would be a big increase in overheads. It is a short-sighted policy on their part."

And Peter Steele, of First Financial in Harrow, Middlesex, agreed, warning the "sour taste all this leaves may be forgotten by some but not by others".

He added: "It strikes me in a similar vein that unless they go out and start massively employing whole departments they could struggle.

"Cycles will turn and it will come back round and as a response to what they have done then intermediaries will use someone else. It's the only way there's some kind of recourse."

An RBS - which owns Direct Line - spokesman said: "We would not speculate on what might happen in the future." Abbey were unavailable for comment.