In addition to this shocking statistic, the vast majority of mortgage brokers (87 per cent) have handled deals affected by numerous range withdrawals or pipeline delays which have abounded in the current climate.
Duncan Berry, sales director at GE Money Home Lending (GEMHL) said: “During these challenging times there will inevitably be changes to ranges with shorter notice periods, but communication is key and lenders should endeavour to give brokers reasonable notice to alterations in product ranges and changes to pipeline dates.”
Since the global credit crunch, brokers have been more familiar with lenders withdrawing products at short notice, as well as amending criteria or revising rates and fees. According to GE Money research, pipeline speed, efficiency and clarity are one to the biggest factors when it comes to the smooth running and profitability of most UK mortgage brokers, with 96 per cent claiming this to be the case.
However, despite the importance placed upon pipeline - and the associated problems it causes for businesses and consumers alike - mortgage brokers are pretty understanding of the need for changes to ranges in the current market.
Indeed, a surprising 59 per cent of brokers felt that it was acceptable for lenders to withdraw deals with as little as one week’s notice, with 85 per cent of brokers requesting two week’s notice as a reasonable time frame.
Berry continued: “Brokers are not a naïve bunch, so have a realistic attitude when it comes to lenders changing ranges in the current market. However, a clear frustration is that some lenders fail to give reasonable notice or fail to communicate clearly to their partners when making fundamental changes to their ranges. Pipeline speed, efficiency and clarity are clearly important to broker businesses, so it is crucial that lenders work hard to keep them well informed when making such alterations."
