Today, Halifax has informed brokers that it will be launching multiple mortgage products in the product transfer (PT) window.
In a bid to improve processes for customers who have two separate products both ending within the six-month PT future dating window, Halifax will now offer the option to selected the same new product for both product transfers.
This means that Halifax will honour the product secured on the first PT for the second PT.
The lender told brokers that the first PT application should be keyed online as normal, but brokers will need to call ahead to key in the same product for the second PT.
Newspage asked brokers whether this would benefit clients, and if it would bring about further innovation in the product transfer market.
Justin Moy, managing director at EHF Mortgages, said: “Anything to improve the product transfer process is all good news.
“Those borrowers with all lenders that have split products and therefore different expiry dates within their mortgage do feel trapped with their current lender, or will have to pay an Early Repayment Charge to break this cycle.
“Some lenders offer a No-Early Repayment Charge option, typically a tracker deal, to help align all the different accounts eventually, but it looks like Halifax is definitely trying to be proactive here.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert, added: “Halifax may be onto something here, or is it a patch job on a leaky canoe?
“It improves things but doesn’t conquer the rapids.
“This only benefits clients who have a split mortgage with different end dates within a six month window, but for everyone else, they’re stuck paddling solo.
“Reading the process guide, it may not all be fully automated, and you may have to call the lender to update some products, a bit like building a fire with damp twigs.
“Slow, frustrating and maybe prone to failure. But then again, this is Halifax.
“They tend to get things right the majority of the time, so fair play to them for being innovative. The question now is, is this the year of the PT? You could argue it is… Halifax certainly seem to think so.”
Gary Bush, financial adviser at MortgageShop.com, said: “Lenders’ arrangements for product transfers need serious improvements so this is a good step from the UK’s largest mortgage lender, Halifax.
“However, it’s sad to see the ‘need to call for us to key the same product for the second PT’.
“This is common with lenders [and] often these calls involve long on-hold delays when they could easily have a section of their online broker systems allow for these requests to be made online without the time wasted on hold.
“The same applies to Halifax if you are conducting a further advance and product transfer with the lender and you receive a decline on further borrowing, you have to call the lender to have the case unlocked to allow you to proceed with the product transfer for mortgage account holders.
“Such processes are really from the dark ages.
“Seriously, all lenders need to sit down and work out fully electronic processes for use by partner financial firms, removing all the pinch points. The pandemic should have taught these companies this.”
James Bull, mortgage broker at JB Mortgages, concluded: “This is a rare issue that mostly arises when a client has previously ported a mortgage or taken a further advance, and as such ends up with a rate in two parts with two end dates.
“The previous process meant you could only do a product transfer on one part and had to wait for it to complete before doing the second part.
“So, the new process is much improved. I do not foresee this making any difference to business levels, but it will certainly mean a much-improved service we can offer to Halifax mortgage customers.”
