"I think an industry standard should be mandatory, as this would at least enable brokers to manage clients' expectations and our diaries."
After giving brokers just 25 minutes' notice of rate changes last week, TSB later said in a Friday product update that brokers would have until close-of-business on Monday to process applications.
Following on from this, PR platform Newspage asked brokers whether they would like to see all lenders adopt an industry-wide notice period of 48 hours or longer.
Some advisers called for an industry standard but others were more understanding of short-notice withdrawals in the current market. Here are their views:
Craig Fish, director at Lodestone Mortgages & Protection: "Whilst I appreciate that lenders do sometimes need to make quick decisions in a fast-moving market, if the likes of Coventry Building Society can always manage to give 48 hours' notice, I fail to see why others can't. I think an industry standard should be mandatory, as this would at least enable brokers to manage clients' expectations and our diaries. Furthermore, this does highlight the importance of educating our clients to provide all relevant documentation when requested, rather than delay for days and then be disappointed when a rate has been withdrawn.
James Vince, managing director at Castle View Finance: "We continue to see a rollercoaster of notifications from lenders. After a short period of stability, it is still a shame that lenders cannot come to an industry standard to ensure clients can have the best chance of advice and recommendation. We see this in great effects in the specialist product ranges from lenders, where unregulated business can change quickly and inconsistently. With the likes of Coventry Building Society giving brokers a set period of notification, allowing business to be submitted and concluded in good time, it feels like a breath of fresh air in comparison."
Riz Malik, director at R3 Mortgages: "Coventry Building Society has a two-day notification requirement for product withdrawals, which all lenders should follow. Brokers have less stress as a result, and it is easier to manage your pipeline. As rates have tended to move downward in the past few months, we have been spoilt, but the tide may be changing."
Lewis Shaw, owner and mortgage broker at Riverside Mortgages: "Short notice periods are frustrating. However, we have to understand that lenders need to make decisions quickly at times due to emerging market data. Lenders are commercial entities, and they're entitled to do as they please. Yes, it sometimes makes our lives as brokers challenging but it's not a massive problem. The stand-out lenders that always give reasonable notice are Coventry Building Society, Halifax and Accord. However, the real lesson here is about explaining to clients the importance of getting all their documents to us when we ask for them in the correct format. That way, when emails inevitably drop into our inbox, we have everything on file to make an application."
Joe Stallard, director and adviser at House and Holiday Home Mortgages: "In an ideal world, it would be great to have more notice to get applications in when rates are going to change. 25 minutes was particularly challenging. However, it's part of life as a broker and provides us the opportunity to help guide clients through these big decisions. A client should never feel rushed into a decision, but they do need to understand that the mortgage market is constantly moving and rates cannot be secured until they give the go-ahead. With lenders having different funding models, I don't think an industry-wide notice period is ever something we'll see so instead we should control the things we can control and ensure our processes are up to scratch."
Thomas Collier, advising director at Advantage Financial Solutions: "We have to remember that lenders don’t like giving short notice periods. They don’t do it for fun. It’s also important to consider how lenders are funded. It’s considerably easier for a building society to give a good notice period than it is for a small tranche funded lender that must react very quickly to the movements in the market that funds them. That said, it’s deeply frustrating when some large banks give too little notice, this harks of a communication breakdown within the bank more often than not. Some lenders are notorious for mispricing their products, I have pretty much come to expect crazy withdrawal notice periods from a select few."
