While much of the attention regarding product withdrawal notice has focused on the impact on intermediaries, packagers have also been working in an information vacuum, with some lenders notifying packagers of a product withdrawal after it has happened.
Simon Biddle, director of marketing and communications at In-Focus Mortgage Packaging, said: “I know other forces are at work but, to a large extent, the role of the lender is to manage its exposure and funding lines.
"However, there have been shockingly poor examples of this and you are seeing products being pulled with very little notice. Just a quick call from the business development manager wouldn’t go amiss and it’s not a difficult thing to do.
"I think this shows the contempt of some lenders for the packaging market.”
Vic Jannels, chairman of All Types of Mortgages, insisted it was an issue of ‘Treating Customers Fairly’ (TCF).
He said: “I understand the constraints lenders are working under but it’s not TCF for the consumer. The broker has to sell a product on the knowledge he has of what is out there.
"But if the product is pulled without him knowing, how is that TCF? Ultimately, the consumer blames the broker, the broker blames the packager and the packager carries the can.”
Packagers admitted they understood the conditions that lenders were working in and were often doing the best they could.
Rob Jupp, managing director at Personal Touch Packaging, said: “It has only been a very small number of cases of which I would call unacceptable. What is needed between lenders, packagers and brokers is better communication. A little bit of notice goes a long way.
"However, having the ability to book funds is fantastic as that way, you know you are getting the product you want.”
Doug Hall, deputy managing director at 3mc, added: “There are a lot of lenders out there with their own agenda. But looking at it from a lender’s perspective, I’ve got a greater understanding of the pressures they are under. What is important, as in any market, is to make sure you choose your partners carefully.”
