Abbey for Intermediaries has notified around 140 advisers that they will no longer be able to use its fast-track facility following a review of their business performance.
Money Marketing sister publication Mortgage Strategy understands that those affected are equally split between appointed representatives and directly authorised brokers.
There were rumours last week that the measure was the result of the lender taking action against advisers who had failed to provide evidence of clients’ income.
But Abbey says that while the advisers have been removed from its fast-track service they are still able to submit normal cases that have been fully packaged and they have not been removed from its panel altogether.
A spokeswoman for Abbey for Intermediaries says: “We have contacted a small number of intermediary firms to advise that following a review of their business performance, they will no longer be eligible to use our fast track service. These intermediaries can continue to place fully packaged cases with us and we will be working with them to discuss other areas where business performance can be improved.”
PMS executive chairman John Malone says that the market is already starting to see lenders get stricter with their systems and processes, such as with Nationwide’s recent decision to return applications that are not filled in correctly.
He says: “Under the Mortgage Market Review all brokers must have a better understanding of all lenders product criteria and systems otherwise will be far more strict and brokers will be eventually refused access to their products.
“We’ve obviously already started to see that put into place with the Nationwide.”
However, industry sources say that some brokers have been actively removing themselves from Abbey’s fast-track process because they’ve found it difficult to gauge what Abbey required.
One source told Mortgage Strategy: “It’s an emotional area for a lot of brokers. I know of firms that have already taken themselves out of Abbey’s fast-track process because they’ve found it so difficult. The difficulty is in filling in the fields on the fast-track application in comparison with the normal application. So what it says on the form is not what people actually have to input – so some are choosing to submit business on a fully packaged basis.”
Robert Sinclair, director of the Association of Mortgage Intermediaries, says that where people are not able to comply with the rules of a lender then the lender can take action.
But he adds: “Potentially there are people’s livelihoods are at stake so it is important there is an appropriate appeals process. Some brokers find Abbey’s systems complicated and difficult to follow, therefore we hope the lender is taking this into consideration when making its decision.”