Intermediaries and lenders have rejected calls for two-hour remortgage decisions as dangerous and unnecessary.
Barnetts solicitors had called for the mortgage industry to pilot a two-hour remortgage. Richard Barnett, senior partner at Barnetts Solicitors, said: “As consumers we can buy a car in one hour, get a £25,000 loan within three days and in some cases, get divorced using the Internet. So, why can’t we buy a house within a week or, perhaps even more radically, change your mortgage provider within two hours?”
However, Craig Arthur, operations director at Capital Mortgage Connections, said: “The timescale between an application being made and going ahead gives borrowers time to think.” If that time was taken out of the equation he said there would effectively be no cooling off period and many borrowers would find themselves under pressure and would “encourage the cowboys.”
Linda Will, managing director of Accord, added: “Speed is seldom of the essence. It is about selling the better product and not so much turning it around quickly. Having clear decisions and obstacles removed are of greater importance than speed.”
l Barnetts is to create 100 new jobs in its conveyancing division, taking the number of employees to 320.