View more on these topics

Abbey introduce ‘one strike’ mortgage application policy

Abbey has tightened up its mortgage application process whereby advisers’ applications will now be rejected on the first declination.

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.”


Taking a cut

I am trying to do the best thing for my employees who have a wide range of ages and salary levels. Can you tell me the pros and cons of introducing a salary sacrifice scheme?

Structured switch

Former Keydata consultant Adrian Neave is to join Arbuthnot Banking Group to head its new structured products distribution business.


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Abbey’s new policy
    What an absolute load of rubbish. There can be surely no lender with such an inefficent system as Abbey. As an Intermediary it is impossible to know where you stand with them. They ask for item after item on an individual basis – stuff that no other lender asks for – and each time you send an item it takes three days ‘in the queue’ before you get a response (usually with a request for something else) and so it goes on. How they would cope if competition came back into the market place I shudder to think Their underwriting is an absolute shamles

  2. Abbey One Strike
    Perhaps if Abbey put some effort into improving their system and being clear on thier underwriting requirements upfront it wouild solve a lot of their issues.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm