The directory will show each of the listed lenders’ expected product notice period policy split between: less than 24 hours, 24 hours, 48 hours, 48 hours-plus and those who have not specified a timeframe.
It will then cover each individual lender, the notice period they outlined and commentary on policy and past performance.
Paradigm said this aims to provide clarity to adviser firms who can use the information in their lender selection along with other factors like price, criteria, affordability, financial strength and product transfer options.
The firm said it will maintain and update the directory as it receives further responses and amendments, but said policies may not be “set in stone”. It added that there can be mitigating factors like market volatility and service levels which can lead to a change in policy.
The directory can be accessed here: https://www.paradigm.co.uk/mortgages/services/mortgage-helpdesk-support-hub#lender-product-withdrawal-schedule
Richard Howes (pictured), director of mortgages at Paradigm, said: “There’s no doubt that, in a very volatile mortgage market recently, the issue of product withdrawals and specifically the notice period provided to advisers and their clients has been a hot topic.
“There have been calls for an industry-wide commitment to at least 24-hours’ notice and we know that very short notice periods for either product pulls or rate changes, heap a significant amount of pressure on advisers and lenders which increases their workload considerably.”
He continued: “At Paradigm we’re committed to supporting our member firms through challenging times, and therefore have built what we believe is the first directory of its kind in the mortgage market, to outline the withdrawal policies and criteria of the majority of lenders currently on our panel.
“Our aim here is to provide an extra layer of information and education to advisers which they can build into their research work for clients, and they can utilise in order to come to their final product/lender recommendation.
“As we receive further information, or indeed as more lenders amend their policies in this area, we will update the directory so it is a living and breathing document that firms can tap into whenever they need to.”
