View more on these topics

Deals on wheels

We are currently receiving a higher than expected volume of enquiries and apologise for the delay caused. Your application is important to us. We hope to resume normal service soon.

Sound familiar? Anyone who has phoned a call centre anywhere from Glasgow to Mumbai will recognise the frustration that comes with automated responses such as this.

Unfortunately, brokers are now going through the same ordeal with lenders. There are major delays in processing applications as lenders struggle with turn-round times.

Northern Rock BDMs issued a warning recently that they are taking seven days to look at a case after submission and their support staff have quoted a six-day turn-round for referrals to underwriters. Coventry Building Society is warning of a 96-hour wait to check emails and it has staff working weekends to catch up with the backlog. Accord even pulled a range of products for more than a week to process mounting residential mortgage applications.

Why the sudden hold-up? The demand for the best deals has increased, thanks to overall market uncertainty and the looming stamp duty deadline for first-time buyers. Combine this with redundancies in the industry and you can see why lenders are ill-equipped to keep up the pace.

Securing a deal before it is removed from the marketplace can make thousands of pounds of difference to clients but excessive processing time makes this increasingly difficult to achieve. This is particularly true for those FTBs trying to meet the stamp duty deadline.

Mortgage brokers live and die by the FSA’s treating customers fairly mantra and lenders should have to meet the same exacting standards. This means that when a deal is made in principle and clients meet the necessary criteria, lenders should not be allowed to renege on the deal because they take too long to process it.

Lenders need to take advantage of the heightened activity in the market right now and help brokers push through as many deals as possible. Lenders need to help brokers to help them. Process the applications and it is win, win, win – for brokers, clients and, not least, the lenders.

Dominik Lipnicki is director of Your Mortgage Decisions

Recommended

Peter Williams: HMRC VAT guidance not in line with tax laws

Industry consultant Peter Williams says HM Revenue & Customs’ RDR VAT guidance is not in line with its own tax rules but overhauling VAT on adviser charging was not a priority for the Government. HMRC finalised its RDR VAT guidance earlier this month, which confirms advice will be exempt from VAT where clients are looking […]

Towry looks to revive IPO bid

Towry is looking revive its flotation bid in the next 18 months if markets become less volatile. Towry chief executive Andrew Fisher told the Financial Times that Palamon, the US private equity group that has held a controlling stake in the company for nine years, is keen to exit the investment when it becomes possible. […]

4

Scot Life says providers snubbed decency limits on adviser-charging

Scottish Life says providers roundly rejected an FSA suggestion that decency limits on adviser-charging should be introduced. Speaking at a Money Marketing RDR invitational event in London last month, business development manager Fiona Tait said the regulator wanted providers to report advisers who were taking excessive adviser charges from products. Tait said: “The FSA did […]

Neptune Global Income: Is Japan the best dividend market in the world?

By George Boyd-Bowman, Fund Manager at Neptune The Neptune Global Income Fund seeks exposure to the very best – and often overlooked – income opportunities from across the world. Unconstrained by benchmarks, the fund currently has 24 per cent invested in Japan, differentiating the high conviction portfolio from many of its peers. Watch Neptune Fund […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment