Brokers have complained that the lender, which has a strict monthly payment system, has delayed some commissions by up to six weeks.
Although this money still makes its way to the broker, many believe the hold-up is having repercussions for the companies involved.
Paul White, consultant at Belgravia Insurance Consultants, said: “Northern Rock has some good products and rates but its service levels bottleneck. I have encountered numerous times when my applications have been sent well in advance but have not been processed until after the cut-off date, delaying my money.”
White went on to add: “Reluctantly I am still using Northern Rock. The ideal situation would be for a packager to provide its products so I wouldn’t have to deal with it directly.”
However Ron Stout, assistant director of PR at Northern Rock, defended the lender’s policy: “When a mortgage application is completed in one month then payments will be made automatically in the middle of the month following completion.”
Mike Fitzgerald, sales director of Brentchase Financial Services, said: “Brokers need to understand lenders operate in different ways. Although payment delay could create a cashflow problem, if the company cannot afford the financial delay then they do not really deserve to be in business.”
Northern Rock, along with Halifax, was further criticised for the canvassing of broker’s clients in attempts to cross-sell products, an issue reported in last week’s MI.
Portsmouth-based sole broker David Jackson said lenders are increasingly trying to take away his business. “The Halifax actually called one of my clients at work to ensure he had all his insurances for the mortgage, even though the mortgage had been declined by the lender the day before.”
