Encouragingly, lenders and brokers are looking for new ways of working – from new innovative products to focusing on other areas of the market like product transfers – but the range of products available to borrowers is still limited compared to what we saw last year.
Now, more than ever, treating customers fairly (TFC) should be at the forefront of our minds.
Most businesses have well-established TCF policies and practices, designed to protect customers. While these principles take on extra significance during challenging periods, it is in these trying times that they can be hardest to adhere to.
Unforeseen market disruptions
After the mini Budget, we witnessed a large number of customers lose the rates they had applied for, some almost overnight or even after the offer had been produced. With mortgage purchase transactions being reliant on the funds, many customers would have faced higher fixed rate products.
Others would be left with no option but to revert onto their lender’s Standard Variable Rate (SVR) or, worse still, ultimately lose the purchase due to new rental calculations limiting what they could afford to borrow, losing any fees paid in the process. For many landlords this knock-on effect would have been felt across their portfolio of properties.
As an industry it is essential that we support our customers through this time. Whilst we do not have a direct impact on the bigger aspects like the financial markets, there are some smaller pieces of the puzzle that we can make sure we are focused on.
Playing our part
Buy-to-let can tend to be more complex and it is important we understand the case fully before presenting it to a lender.
It’s easy to forget that the underwriter has not had the benefit of speaking to the client or any knowledge of the property or area. Painting a full picture can not only give the underwriter the knowledge and understanding to be happy to lend on the case, but it can speed up the application from end-to-end if fewer questions and supporting information are required later on.
Whilst it might seem obvious, the accurate keying of a case is essential.
Often any error in the initial keying can only come up after the offer has been produced. For some lenders this could result in a full new application being needed, potentially leading to the selected rate being lost, as well as weeks of delays. Double checking things with the customer or giving a second check over something you have keyed could save huge amounts of time later down the line.
BDM assistance
Business development managers (BDMs) can also be a key component to ensuring the case fits before the application is made.
Again, this can help to avoid unnecessary delays in situations where the case does not fit or, if it is something the lender will consider, the BDM can assist in making sure the correct information is submitted to avoid hold-ups once it hits the underwriter’s desk. For many brokers, BDM visits to the office will be fewer post-Covid, but there are always opportunities to build relationships through virtual meetings or just staying in touch over the phone.
With rates still being withdrawn at short notice, more speed and less haste can be the key to applications being successful.
Accuracy, double checking information and being as thorough as possible will certainly give the lender the comfort needed to lend where they can.
We all want to be able to lend our customers the money they need and working together will help us to do this more, especially if we see every application as a customer and not just a case reference.
