Brokers' wishes were discussed
Nottingham Building Society made a significant change in its mortgage application process at the end of July, giving brokers the option to select products at the decision in principle (DIP) stage.
So what prompted the decision and what do brokers think of it?
Updating the application process
“At the building society, our mortgage model is 100% intermediated, and we believe strongly in the value of seeking feedback from our brokers to understand what matters most to them and their customers,” said Alison Pallett (pictured), sales director of Nottingham Building Society.
Based on their insights, Pallett said the lender chose to update its application process now to address their top priority; providing a smoother, more streamlined experience for brokers and their clients.
Brokers’ desires
Pallett said the lender’s latest alteration is something brokers had been calling for very loudly, and for some time.
“By selecting a product at the DIP stage, brokers can now ‘lock in’ that product, ensuring its availability even in the event of the product being withdrawn at short notice,” she said.
Given the recent volatility in the market, Pallet added rapid rate changes and rising interest rates have made this a particularly challenging time for lenders, brokers, and customers.
“Our measures aim to eliminate some of the stress associated with this process, ensuring a smoother experience for everyone involved,” Pallet said.
What else do brokers want?
Pallett said the lender is also aware brokers are signalling for greater standardisation and consistency across the mortgage market.
“Brokers advocate for streamlined processes and transparency from all lenders, enabling a more accessible and efficient experience for customers across the board,” she said.
Furthermore, Pallett said brokers also want better communication channels and faster response times, in turn fostering stronger partnerships between lenders and intermediaries, which would better serve the diverse needs of borrowers in today’s dynamic lending landscape.
Brokers’ views
Rhys Schofield, brand director at Peak Mortgages and Protection, said in a world of rapidly changing rates, being able to book a product in advance is only a good thing for brokers and clients.
“Removing that pressure of cobbling together a submission to meet a product withdrawal deadline with a mere few hours’ notice can only up the standards of submission, and reduce the risk of fraudulent cases being submitted by unaware, frazzled brokers,” he said.
Michelle Lawson, director at Lawson Financial, agreed with Taylor-Barr that the building society’s announcement is good news for the market as well as brokers, and she added that it shows how lenders can support the adviser community with innovation and progression.
“This is exactly what we have been campaigning for with the 24 hour pledge; we still need more to follow, though,” Lawson added.
Scott Taylor-Barr, financial adviser at Barnsdale Financial Management, said if selecting a product at DIP stage secures the product for the client for a reasonable period of time, then this is excellent news.
“It also represents one of the key suggestions that has been asked of lenders, which should help the issues we have seen with lenders pulling rates with little or no notice,” he added.
Stephen Perkins, managing director at Yellow Brick Mortgages, also gave the move the ‘thumbs up’.
“This is very welcome news during these times of mortgage rates being withdrawn with little to no notice,” Perkins said.
Are the changes Nottingham Building Society made to its mortgage application process something you had been calling for? Let us know in the comment section below.
