Just 16% of brokers feel lenders offer enough information when clients are turned down, while 36% said no detail is provided and 47% believe that while an explanation is provided it is not enough.
Despite the results, Colin Payne, associate director of Chapelgate Private Finance, said some lenders do their utmost to assist brokers when cases are declined, although this varies depending on the lender.
“Our biggest issue for initially declined cases is due to varying formats of address on converted flats where lenders’ systems cannot ‘pull through’ information from credit files and cases are declined on credit score,” he said.
“I find that most lenders are open to discussing such cases and manually changing addresses, but some offer no real assistance which is frustrating and time consuming for brokers and clients alike.”
Payne added that if an applicant has unusual circumstances then the broker should ensure there is a conversation with the lender before any application submitted.
He said: “If you can demonstrate what work you have done with a lender beforehand or in the event of a decline, the efforts you have made to appeal where appropriate means clients are generally happy. In some cases the relationship can be enhanced as long as ultimately the case is successfully placed.”
Anderson Harris director Jonathan Harris agreed that banks will generally inform brokers when something has gone wrong with a case.
“Often the issue (if the case has passed credit) is based around either affordability or valuation, in which case the underwriter or your BDM will generally contact the broker and inform you of the issues,” he said.
“If the case fails on credit score then things can get tricky as banks do not generally disclose this information to the broker and client. In general, a case properly researched and the right lender selected should not result in a decline.”