The Castle Trust Bank Pulse survey found 76 per cent of brokers would think twice about going back to a lender that did this.
This represented 60 per cent of respondents who said they would be less willing to use a lender if there was not reasonable withdrawal notice, while 16 per cent said product withdrawals would definitely impact their decision.
Although brokers are reluctant to use lenders who remove products at the last minute, they were understanding of why this might happen with nearly two thirds expressing sympathy.
When asked how long would be acceptable for a lender to allow a positive decision in principle to be submitted as a full application, 29 per cent of brokers said 48 hours.
Nearly a quarter of brokers said five working days was preferable.
As for why product withdrawals are a nuisance, 60 per cent of brokers said it was a challenge to manage their client’s expectations. Some 55 per cent said this meant having to go back and research suitable options.
Other challenges cited included the extra time and administration needed to gather the documentation required for a full mortgage application.
During the research, one broker said: “The worst feature of today’s market is uncertainty. No one is sure what’s going to happen next and when.” Another said that short notice product withdrawals meant hours of work outside of normal business hours, which had an impact on their family.
Anna Lewis (pictured), commercial director at Castle Trust Bank, said: “The Castle Trust Pulse survey provides a snapshot of the trends and challenges brokers are currently experiencing in the market, and short notice product withdrawals have certainly been a key challenge in recent months.
“However, our research found that brokers are, on the whole, sympathetic to lenders in this situation – they just want a reasonable amount of notice to enable them to better serve their clients. And most brokers would reconsider using a lender if they think it hasn’t provided enough notice in the past.”
She added: “The study highlights the importance of certainty, particularly in an uncertain environment and serves as a reminder of the critical role of communication for brokers and lenders to work together for the ultimate benefit of the customer.”
