The campaign, presented by brokers Riz Malik and Jamie Lennox, was devised as a reaction to highly unstable swap rates which caused rises in mortgage pricing.
This also comes after the weekend which saw around 200 products withdrawn from the market.
Yesterday, HSBC and Nationwide announced last minute withdrawals, spurring broker pleas to extend the notice period and this morning, Saffron Building Society announced the temporary removal of certain fixed rates but honoured the 24-hour lead time.
MPowered has expressed it will provide as much notice as possible, but said the current uncertainty makes committing to strict timelines impossible.
Brokers have said a 24-hour notice rule would give clients time to consider alternative options and protect the market from fraudulent activity. They also warned that key information can slip through the net as brokers scramble to make rushed submissions.
Lenders need to make a call
Stuart Cheetham (pictured), CEO of mortgages at MPowered Mortgages, said: “As a lender, when there is a large movement in swap rates, we need to make a call as to how we react. This will inevitably depend on how much volume we are originating, how quickly we think any remaining hedge will last, what the cost of that new hedge will be and, of course, how any withdrawal will impact our brokers. Lenders have a regulatory and legal duty to act responsibly to protect their business, customers, and the industry as whole. The key is minimising the impact on borrowers and brokers in the market, and this is why we welcome this initiative.
“If lenders were to guarantee notice periods, this would inevitably lead to new and higher costs, particularly when rates are rising, and this would almost certainly mean higher mortgage rates for borrowers, something that lenders industry-wide are trying to avoid.”
He added: “We would implore all brokers to keep an eye on the swap rates to position themselves at an advantage and continue to offer the best advice to their customers, which we know they are so dedicated to do.”
