Abbey for Intermediaries says, from today, if a mortgage application is ‘declined’ on the first submission to an underwriter, advisers will be informed and there will not be the opportunity to challenge the decision.
If however there is a significant change or insufficient detail provided by an intermediary and the adviser feels that the decision could be reversed with an improved application, they will now have to submit again, referencing the failed original. If this is done within 28 days it will not register a further credit search.
Last month, Abbey for Intermediaries chief operating officer Clive Kornitzer said as much as 65 per cent of mortgage applications the lender was receiving were not properly packaged by the adviser. It says this, alongside “exceptionally high volumes” of applications has led to the ‘one strike’ policy.
An Abbey for Intermediaries spokesman says: “We are currently spending considerable time working on incomplete submissions in order to help ensure they get processed. Consequently, this is impacting on both our service levels and the time it takes to process cases. As such we have decided to implement some changes into how we approach these incomplete mortgage applications.
“These changes will in no way affect mortgage brokers who submit fully complete applications.”