This week’s first comment is in response to: Mortgage brokers reluctant to use lenders who pull deals at short notice
Arron190 said: “If an independent broker would not use a lender because they caused them inconvenience, they need to reconsider their role. Lenders are businesses not charities and many try to give good notice, but it is not always possible.
“Such brokers should offer borrowers the best priced product for which they are eligible at the time of the application without allowing any personal bias.”
They added: “Anyone who knows how a lender funds its products will know two to five days’ notice is not always possible or practical. Last year, one lender took an entire month’s work in one day, so imagine if it gave two days’ notice.
“Firstly, it would run out of funds and not be able to honour the rates, or doing so would be at their cost, and secondly it would also severely impact on service trying to process that many cases. Of course, I appreciate the article is aimed at coercing lenders to give more notice, but they could only do so by increasing their margins, which is detrimental to borrowers who must be our prime concern as independent brokers.
“Yes, rate withdrawals are frustrating and put us under pressure, but this is compensated by the income we receive. Besides, there are worse jobs with worse problems.”
‘What matters to an adviser is the volume of clients and their case size’
This week’s second comment comes from the piece: The history of equity release points to a bright future – Charles
Angela Pain said: “72.98 per cent of statistics are largely irrelevant. No adviser cares what percentage of clients had drawdowns or lump sums. Best advice ensures they get what they need. What matters to an adviser is the volume of clients and their case size.
“The dramatic and sustained decrease in the both the number and size of cases presumably accounts for the ‘challenges’ referred to by the author. Where are the statistics on these?”
She added: “The toxic combination of low loan to values (LTV) and high rates has decimated my business levels. Yours too?
“Despite the optimistic pronouncements of senior industry figures, there is no end in sight. Being emboldened does not pay the rent. Cementing our place in the future does not put food on the table. Just ask the companies that have made advisers redundant. Their actions speaker louder than all the optimism and rallying calls to hold on for a brighter future.
“It would make a refreshing change for someone to write an honest appraisal of this industry with some relevant statistics. Please would someone step up to the plate?”
‘Hardly surprising’ borrowers unaware equity release can be used for remortgage
This week’s last comment came from the article titled: Key ‘disappointed’ as ASA rules equity release ad ‘irresponsible’
Ray Boulger said: “It is hardly surprising many in the target market do not realise a product called “equity release” can be used to remortgage. For most people equity release means borrowing more money, not simply remortgaging, which releases no equity at all.
“In fact, if there is no additional borrowing it is hard to see how calling the product “equity release” passes the clear, fair and not misleading test.
He added: “The same principle applies for purchases as many people do not realise a lifetime mortgage can be used for this purpose. The solution is simple. Start using the regulatory term, lifetime mortgage, to promote this product.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
