Brokers have accused lenders of adding “stress” to the current situation in relation to repricing by withdrawing products at the last minute.
Lenders have been withdrawing and repricing products as the market readjusts to increased rates following last weeks higher than expected inflation figures.
And while some lenders have been providing notice to brokers others have been accused of pulling products with little or no notice.
Justin Moy, founder at Chelmsford-based mortgage broker, EHF Mortgages, said: “These last-minute communications just add to the stress of the situation.
“Decisions on rate changes and repricing must give everyone the opportunity to react in a controlled manner, especially when the increases are hefty and make a real difference to a borrower.”
Moy used an example to drive the point home: “On a £200,000 mortgage, a 0.5% change in rate is worth approximately £2,000 in interest over two years, and as brokers we want to do what’s right for borrowers and save them money.
“However, the need to react so quickly creates a difficult environment for everyone. More needs to be done by lenders to give sufficient notice to both clients and brokers.
“The regulator will need to look at this through the Consumer Duty lens, as it’s certainly not in the Public Duty.”
And Matthew Jackson, director of Salisbury-based mortgage broker, Mint FS, agreed that short notice product withdrawals now seem to be prevalent: “48 hours notice used to the be the norm, then it moved to 24 hours and now it seems perfectly acceptable to all lenders to give little or no notice to brokers and their clients.”
But Anil Mistry, director at Leicester-based RNR Mortgage Solutions, warned that brokers would have to get used to short notice withdrawals: “These brief and concise notifications regarding product withdrawals have become the prevailing standard in the mortgage industry, and it is imperative for us as brokers to embrace and acclimatise to this new reality.
“They signify the state of the current mortgage market and the inherent volatility of swap rates, which directly impact mortgage rates.
“Presently, I am only accepting a limited number of appointments, as this allows me ample time to diligently handle and submit applications.”
