It aims to give intermediaries additional time and certainty to convert DIPs into FMAs
Hanley Economic Building Society has made a commitment to provide 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 lender said the seven-day commitment aimed to give intermediaries additional time and certainty to convert DIPs into FMAs, considering the current volatility in the mortgage market.
“Operating in such a highly unpredictable lending environment makes it difficult to offer assurances around the shelf life of any individual product,” commented David Lownds (pictured), head of products and marketing at Hanley Economic Building Society.
“However, by introducing the certainty of a seven-day transition window, we can ensure that our intermediary partners have sufficient time to collate all the necessary documentation to support a full mortgage application and help mitigate disruption for them and their clients.”
Mortgage brokers have also been asking lenders to observe a minimum notice period of 24 hours on product withdrawals, saying that it is crucial for them to have sufficient time to adjust their strategies and inform their clients accordingly.
“We hope this commitment brings some relief in a time-pressured marketplace,” Lownds said. “We pledge to continue providing advisers with strong lines of communication, transparency and as much notice as possible around any product changes going forward.”
Hanley Economic said each case would still be assessed on an individual basis by its in-house underwriting team, meaning no credit scoring, with a range of residential, buy-to-let, shared ownership, retirement interest-only and self-build products available through the mutual’s branch network and selected intermediary channels.
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