Until now, the predominant tone among lenders was not to communicate any information with the broker once the mortgage offer was completed – something that has led to issues over client ownership.
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However, Accord has said it will now tell brokers once their client has missed their second payment, therefore allowing them to get in contact to try and improve the client’s situation.
Linda Will, managing director of Accord, said: “A lot of brokers want to know when their client has gone into arrears as they will often want to help, especially if they need to protect the client’s other investments. This is a big step forward as I don’t think many other lenders do it and it will be interesting to see how many brokers take up this information and contact the client to offer help.”
Will admitted it would monitor the levels of interest in the initiative to see if brokers take any action.
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However, she stressed it was more about giving the broker the option, rather than compelling them to manage the client’s affairs.
Sole broker Tony Catt hoped the move would set a precedent.
“It will be interesting as the broker will not be paid for helping the client so I wonder how many will take it up. It is excellent for the client. Lenders often tell us we have no authority over the client once the mortgage has completed so this is encouraging. If we are to do a better job, we need as much information as possible.”
