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TSLE2019: Undisclosed lender high-pressure selling with product transfer offer – Jannels

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  • 07/02/2019
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Lenders are contacting borrowers as much as four months from product maturity and suggesting customers have just two weeks to take up a product transfer, brokers have been warned.

 

Speaking at The Specialist Lending Event 2019, Impact Specialist Finance managing director Dale Jannels highlighted brokers to be aware of lenders becoming increasingly aggressive in this regard.

And he warned this could leave clients confused and vulnerable to making incorrect decisions.

“Right now, there are high street lenders writing to your clients four months out,” he told the audience at Sandown Park.

“And in one example four months out on a maturity from a fixed rate, the letter said you have two weeks to take this deal.”

 

 

 

‘Won’t get another mortgage’

Jannels outlined how this had left the customer confused and scared that they were not going to be able to get another mortgage closer to term-end.

He warned that this could have potentially severe consequences for those borrowers who may be coming to the full completion of their mortgage term.

“If you take that further to over-65s who are then coming to their product maturity, that letter goes out and says: ‘We want our money back please’,” he continued.

“It doesn’t say go and speak to a mortgage adviser, go and speak to an equity release adviser, go and seek other options, there are other options available – it just says we want our money back.

“So there are a lot of clients at the moment panicking and possibly panic selling their properties when they don’t actually need to, or downsizing,” he added.

 

The Specialist Lending Event 2019 continues next week with registration still open for the events at York and Liverpool.

They are being held at:

12th February – York Racecourse, York

13th February – Aintree Racecourse, Liverpool

More information and free registration can be found on the Specialist Lending Event 2019 website

Follow the coverage on #TSLE2019.

 

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