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Barclays temporarily pulls portfolio BTL products and limits application volumes

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  • 24/03/2020
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Barclays temporarily pulls portfolio BTL products and limits application volumes
Barclays has withdrawn all its portfolio landlord products along with more than a dozen other residential and buy-to-let (BTL) deals to manage the flow of applications.

 

It has also launched an online form for borrowers to submit requests for payment holidays and there is a dedicated section of its website including full details of how it is helping mortgage customers.

The lender is making the changes, which includes a daily limit on the number of applications it can receive, after it was forced to reduce capacity at its international underwriting centres through Covid-19 restrictions.

In an email to advisers yesterday, Barclays explained the unprecedented situation and apologised to brokers for the inconvenience.

It is hoping the situation will be temporary and it will manage its UK-based underwriting teams to continue operating as optimally as possible.

“These withdrawals are in addition to the measures communicated earlier to further help us manage the inbound flow of applications following the closure of two of our offshore underwriting sites over the past weekend,” the lender said.

“We are withdrawing all portfolio landlord products and regret that we are no longer accepting these applications at the present time.

“We expect to launch a fresh range of products shortly and we apologise for any inconvenience this causes in the interim,” it added.

The products being withdrawn also include three residential and two BTL trackers.

The final date for generating a mortgage information sheet for these products was yesterday and the last rate switch application for the withdrawn product is today, 24 March.

The last application submission date for the existing products is 1 April.

 

Limiting applications

Earlier in the day the lender contacted brokers to explain that over the weekend it had been forced to close two of its underwriting centres because of coronavirus-related lockdowns.

It said this, coupled with receiving high volumes of applications over recent weeks, meant service levels would need to extend and it would be taking pre-emptive measures to protect the business.

This includes limiting the number of applications which can be received each day.

This capacity will be reset at 10am each day with brokers then able to submit decisions in principle (DIP) and full applications until the capacity has been reached.

Once the daily limit has been reached, a message will be provided as brokers progress through the application submission services to advise that the case cannot be submitted at this time.

A message will also appear on the lender’s intermediary hub.

Brokers can continue to populate the application and save the details to avoid rekeying, but will not be able to submit until 10am the next day.

“These are unprecedented times for all of us and I sincerely thank you for your patience and also apologise for any inconvenience this may cause,” said Craig Calder, director of mortgages at Barclays.

 

Making adjustments

A Barclays spokesperson told Mortgage Solutions: “As the coronavirus pandemic continues to escalate, over the weekend you’ll have seen that restrictions have been put in place across India that mean that our key location sites have closed.

“This has resulted in a reduction in our overall capacity, which coupled with the fact we have continued to receive high volumes of applications over recent weeks, means that this is having an operational impact on our business and the service that we’re offering to our customers.

“So we’re making some adjustments to our products and support functions to ensure that we can service our customers as best way possible, under the unprecedented circumstances.”

 

 

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