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Nationwide and Barclays hit by delays due to broker demand

Barclays and Nationwide are both experiencing delays in processing mortgage applications due to broker demand.

A spokeswoman for Nationwide says heightened demand for fixed-rate products, particularly the five-year fixed rate product, is creating delays.

Nationwide’s service level agreement includes a processing period of 14 days but only 50 per cent of applications have been processed within this period since the issue was raised on July 9. The average processing period has since risen to 17 days.

A Barclays spokeswoman confirms ongoing delays on both remortgaging and purchase applications, above its service agreement of five days. Delays of up to eight days for remortgages and up to seven days for purchases were being experienced over the past week.

The spokeswoman says: “We are currently exceeding our service level agreement of five days but we have assigned a team of people to work on the backlog. The mortgage market tends to get a little quieter at this time of year and we expect to have sorted the problem within the next few days.”

Barclays says it is experiencing increased demand across its current range.

London & Country associate director of communications David Hollingworth says, while good rates should be welcomed, overly high demand can have a negative impact: “Ultimately, the lenders will try and match how much volume they are bringing in which may mean they won’t price quite so competitively as others begin to drop or they may even step some of the most popular rates off.”

“In this market, it is very difficult to chastise a lender that’s looking to offer good rates through intermediaries”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Brokers have been warning the big lenders that they do not have enough experienced staff or processing capability for the last 2 years—However the lenders always know best and don’t bother to take any notice until the market hits and then they make a pigs ear out of hard-won cases. Unless they’ve tried dealing direct the customers won’t believe what a useless, inefficient bunch of muppets are processing their case and blame the broker.
    Not a good advert for our industry!

  2. is this really any different to how they have mostly operated for years?

    I find most lenders hard work to say the least, insurance companies are the same – clock in clock out mentality, hour for lunch on the dot !

  3. both have just cut rates too so demand is going to increase and service suffer even more

  4. Okay, so Nationwide asks you beforehand – they’re thinking about cutting rates but the demand will inevitably hit service levels. You’re going to tell them to leave rates just as they are, as a 14 day turnaround is so much better than 17 days, aren’t you??

  5. i think if you tell the client that they are getting one of the best rates in the market but inevitably demand will be high from brokers across the country and processing times will be longer, their expectations have been managed and i dont find it is too much of a problem. At least these lenders are up front, i have just had the case from hell with northern rock who waited a whole month for them to completely mess up the processing of a homebuyers report before they would even begin the underwriting of payslips, proof of deposit etc and kept asking for more and more, taking 5 days to even respond to each new document provided. This could all of been done in the month it was taking them to sort the val, but they insist this is a much quicker and better way of processing! Another month then to just get to offer stage. I would avoid them at all costs at the moment, anyone else had similar problems with them?

  6. This article was published the day we submitted all our paperwork. I’m still waiting for a formal offer from Nationwide. Thats 20 working days and still no offer. The only thing they’ve done efficiently is take the product fee. Surprise surprise.

  7. This is still a massive problem for nationwide and it’s now October!! I have phoned them personally with my application and at no point did he tell me there was processing delays! When I phoned up chasing they said I would hear in 72 hrs, 2 weeks later no news I was then told they had taken on more staff and working weekends to clear backlog and that I should hear Monday however same story although this time the man told me I should never have been told timescales and that it would be several days yet!, they should prioritise those who haven’t even started their house search with those who are at the end and just want to get the survey undertaken!! Disgraceful

  8. I have now been variously waiting for a decision and being asked for more information for about THREE MONTHS. Nationwide clearly do not give a fig for customer relations. The only reason I am still pursuing it with this shower is the thought of going through the whole procedure with another lender. Steer clear of Nationwide !

  9. Taking into account a 2 week period of nothing happening due to the Christmas period we have now been waiting 2 months for our agreement to come through with Nationwide, despite promises that we have the ‘green light’ . This is all we are waiting for to exchange on the house we want to buy. If the sale falls through it will be only because Nationwide have failed us.

  10. well i applied for my mortgage a week before xmas,have not heard a thing since.about the decision.
    its now mid february !

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