On mortgage affordability and innovation, Duncombe said: “We’re probably in a period now where rates are a little bit more stable but there’s still pressure to make sure they become a little more competitive.
“In terms of procuration fees, we feel at 30 basis points on product transfers, that’s a really fair and competitive figure in fact, almost as much as many lenders pay on their front book pricing.”
In the third debate in the series, in association with Accord Mortgages, he continued: “Having said that, there’s a real difference between some lenders’ affordability [calculators] as well, so I’d encourage brokers to really look at those affordability measures and compare lenders, because you will find quite a big difference depending on how those lenders work. And from our point of view that works quite well.”
August gross mortgage lending high
Duncombe said Accord Mortgages had seen its biggest ever August gross lending figures despite the month traditionally being one of the quietest of the year.
“This year it was our biggest ever application August, which sounds really weird, but I think off the backdrop of other lenders being a bit quieter during that period and then our approach, our share has been a lot higher this year.
“It’s a much smaller market but we’re getting a bigger share of that and I think a lot of that is down to our flexibility and common sense and the fact people need to take affordability to the level where they can get the best deal for themselves. That’s really played in our favour this year,” he said.
Mortgage Solutions contributing editor Victoria Hartley asked Rachel Geddes, MD of Global Mortgage Management, what needs to change for brokers to help them work more effectively for their clients.
Geddes said: “One of the things we’ve seen is how quickly products have been withdrawn this year. Changing that pace. Because brokers work long hours and they’re monitoring these mortgages day in day out and they’re getting rate withdrawals sometimes with two to three hours notice. They do feel like they’re on the back foot.”
Detailed lender communications needed on rates and criteria changes
Geddes said lender communications need to be far more detailed and offer all the product information immediately instead of offering an alert on the simple fact the rate had changed.
“We need brokers to be informed quicker and better about what those rate changes actually are,” said Geddes.
“Brokers are getting inundated with emails of rates changes and criteria changes day in day out.”
To Duncombe, Geddes said: “We want to see more. You’re so good at taking a commonsense approach, looking at incomes and [asking] how can we help a client. You’re looking for a ‘yes’.”
She added: “We need more lenders working with us, working with clients to help them get on the ladder and continue to progress with what they want to do with their families and their lives.”
Richard Merrett, director of strategy at Simplybiz said the industry has become obsessed with speed becoming code for good service.
“It’s not all about speed. It’s about certainty and confidence. Some lenders will have withdrawn products citing that they needed to protect service. Service doesn’t matter if you can get the right outcome for your customer,” he added.
For more of the debates in the series, watch the first video in the series on buy to let and part two on first-time buyers.
Note: Subsequent to filming, Richard Merrett confirmed a move to start as MD at Alexander Hall.
