The study showed that 87 per cent of brokers questioned had handled deals affected by the credit crunch due to the withdrawal of product ranges or rates and criteria being changed at short notice. Changing pipeline dates with little notice was also a factor.
The research also showed that 17 per cent of brokers had seen deals not being honoured after a decision-in-principle had been issued, while 55 per cent claimed to have seen an increase in the number of deals not honoured after an offer.
Yet, while 96 per cent of brokers said pipeline efficiency was a major factor for running their businesses, 59 per cent said it was acceptable for lenders to withdraw deals with as little as one week’s notice, while 85 per cent said two week’s notice was acceptable.
Duncan Berry, sales director for GE Money Home Lending, said: “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.”
Alan Lakey, partner at Highclere Financial Services, said: “There’s been a tightening of conditions and a reduction in affordability, so it is having an impact. I had a case recently that I couldn’t place and that’s the first time that has happened to me in years. But interest rates are edging down, so that’s helping.”
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