"Demand has rebounded strongly but they are operating in a very fluid environment with product and criteria changing daily."
Mortgage brokers have revealed their biggest challenges in response to a Paragon Bank survey, which found that many brokers share similar frustrations, focused on lenders’ frequent changes to products, rates and criteria.
Paragon asked over 200 mortgage intermediaries to provide details of the challenges they currently face as a mortgage adviser. Compiling all of the comments, Paragon has revealed that the words ‘Lender’, ‘Criteria’, ‘Product’ and ‘LTV’ were all used the most frequently, with ‘Covid’ unsurprisingly also making the top five.
A significant number of intermediaries said that they would like to see more flexibility and service levels also appear to be a priority.
Despite these challenges, the survey did point to many positives, particularly how landlord demand currently seen in the buy-to-let market is leading to an optimistic outlook for the next 12 months. Just under half of those surveyed state that they expect to write more business in the next 12 months.
Moray Hulme, director of mortgage sales at Paragon Bank, said: “It’s been an extremely difficult time for brokers; demand has rebounded strongly but they are operating in a very fluid environment with product and criteria changing daily. It’s very difficult for them to keep up with the changes and maintain their relationship with their client.
“This feedback is reassuring because it confirms that our approach has been a sensible one. Due to mobilising our entire workforce quickly, we have been able to continue lending throughout the pandemic. We made changes to our criteria and product range early and we have been consistent throughout this period, focusing on our core product offering.
“We have listened to brokers’ comments and suggestions and will be taking these into account in order to offer solutions for the growing number of complex buy-to-let cases we’re expecting to see over the coming months.”