With lenders feeling the squeeze from capital markets, they have been pulling ranges with very short grace periods for brokers to get deals completed.
Therefore, they need to be in constant communication with their clients to act should a lender pull the product the adviser was organising.
Dev Malle, sales director at Personal Touch, commented: “With market conditions as they are, there are plenty of jitters out there and customers need to be made aware that they could lose their product at any time. However, with technology as it is now, deals can be turned around quickly so even if you are only given 24 hours to submit deals, if you are in regular contact with the client it is possible.”
An example of this was edeus, which e-mailed brokers giving a few hours’ notice to get deals in by the end of that day before releasing a range the day after.
Martin Reynolds, commercial director at edeus, insisted that the changes were part of a ‘planned generic range refresh’ and emphasised that market jitters were putting the spotlight on any re-pricing.
Bob Sturges, director of communications at Money Partners, insisted lenders’ hands had been tied.
“Lenders are finding it difficult to borrow and give the same levels of grace as before. For brokers, it’s important to understand that lenders are not making these decisions lightly and they are often being forced by the markets to make changes.”
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