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”