Brokers demand lenders act on FMA submissions

Natalie McNamara
August 2, 2023
July 26, 2023

Last week Mortgage Strategy reported on Hanley Economic Building Society providing its intermediary partners with a minimum of seven days to submit a full mortgage application (FMA) following any product withdrawal, providing a decision in principle (DIP) has been agreed.

The commitment was introduced by the lender to offer intermediaries additional time and certainty to convert DIP’s into FMA’s in such a volatile product arena.

But will significant numbers of lenders follow Hanley’s lead and increase application deadlines in the current climate?

Finova national sales manager Natalie McNamara believes Hanley’s commitment is a tonic for a challenging market.

“This change will likely ease pressure on intermediaries by giving them sufficient time to submit an application following any product withdrawal, provided a DIP has been agreed. There are only a small number of lenders that are committed to this type of transition window, and it’s reassuring to see another lender is listening closely to the needs of brokers”.

She adds: “However, the harsh reality is that this approach isn’t a ‘one-size-fits-all’ for lenders. Different funding models mean that lenders must be agile.

“Where lenders can provide additional support to brokers though, it is certainly welcome. And while not all lenders will be able to offer a similar commitment, this is a pledge I do hope to see more of the sector embrace in the very near future.”

Open Vision Finance principal Justin Phillips accepts that lenders face challenges in volatile times but insists lines need to be drawn and greater efforts must be made to help brokers.

“One of the UK’s largest lenders changed rates no less than 10 times since the beginning of last month, and within that was some additional criteria change; we then have almost every lender following suit.

He adds: “As a company we understand the need to re price rates, we understand the instability in financial markets, the need to hedge and the volatile swap markets but what we can’t entirely understand is the simple lack of notice given to secure rates, often just a few working hours; often on a Friday afternoon.  A conspiracy theorist would think this was to the advantage of the lender not the consumer”.

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