The directory includes the product withdrawal policies of over 50 lenders
Mortgage distributor Paradigm has launched what it called the first of its kind in the mortgage industry – a lender product withdrawals directory for intermediary firms.
The directory includes the product withdrawal policies of over 50 lenders currently on the Paradigm lender panel and shows each of the listed lenders’ expected product notice period policy, split between less than 24 hours, 24 hours, 48 hours, 48 hours-plus, and those who have not yet specified or have no set timeframe.
The document then covers each individual lender, the notice period they have outlined and, in most instances, a detailed commentary from each explaining the policy and its past performance.
“There’s no doubt that, in a very volatile mortgage market recently, the issue of product withdrawals and specifically the notice period provided to advisers and their clients has been a hot topic,” commented Richard Howes (pictured), director of mortgages at Paradigm.
“There have been calls for an industry-wide commitment to at least 24-hours’ notice and we know that very short notice periods for either product pulls or rate changes, heap a significant amount of pressure on advisers and lenders which increases their workload considerably.”
Since a number of lenders have been pulling mortgage products from the market – some at very short notice, brokers have been calling on lenders to provide a minimum notice of 24 hours before discontinuing any mortgage product.
Paradigm said its intention was to provide clarity to adviser firms who could then use the information in their lender selection, alongside other factors such as price, criteria, affordability, financial strength, and product transfer policies.
The distributor has committed to maintaining and updating the directory as it receives further responses and amendments and points out that the policies outlined may not be ‘set in stone’, and might not always be adhered to due to a combination of factors, including market volatility and the ability to maintain service levels and margins.
Broker firms can download the latest lender product withdrawal directory on the Paradigm website.
Howes added: “At Paradigm, we’re committed to supporting our member firms through challenging times, and therefore have built what we believe is the first directory of its kind in the mortgage market, to outline the withdrawal policies and criteria of the majority of lenders currently on our panel.”
The aim, he reiterated, was to provide an extra layer of information and education to advisers which they can build into their research work for clients and use in order to come to their final product and lender recommendation.
“As we receive further information, or indeed as more lenders amend their policies in this area, we will update the directory, so it is a living and breathing document that firms can tap into whenever they need to,” Howes said.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
