This week’s comments were in response to: Chancellor meets mortgage lenders to hash out cost of living support
Nick Doyle said: “Product transfer or product switching, call it what you like, but it already existed prior to this meeting. Someone should have briefed Mr Hunt before he just swallowed the existing criteria as an innovative idea.”
Sox said: “Rate switch and product transfer has never been affordability checked, so that’s a load of rubbish, what the lenders here need to do, is separate their existing customer mortgage range from new customer business and acknowledge that you don’t need an affordability test to know that moving someone off 1.5 per cent onto a new rate of over five per cent in most cases is going to mean they will struggle.
“Maybe they could ‘innovate’ a ‘stepped product’, allowing these customers to transition to a higher rate over a period of time instead of wallop, there you go, that’ll be another £600 a month please.”
They continued: “Also, lenders need to allow brokers to assist with things like term extensions and ‘part and part’ mortgage options. Many current systems can’t cope with anything other than a new rate selection and if the client has further needs they have to go direct, meaning the broker loses out on any rate switch commission, despite having probably talked at length with the client about what their options might be and helping them find a way to avoid arrears
“These lenders are all going to be very busy trying to find ‘highly trained and experienced staff” if they don’t use the already ‘highly trained and experienced broker force’ that have provided them with 85 per cent of their business for the last umpteen years.”
What a waste of time
Derek Compton: “What a waste of time. So, lenders have agreed to allow borrowers who are currently on very low rates, to agree a new product at a much higher rate six months ahead of the end of their early repayment charge period instead of three months.
“Other than that, they have promised nothing more than they are already supposed to be doing. Or is their promise to have “highly trained and experienced staff” on hand to help an admission that currently they don’t provide that.”
He continued: “Last time, we had an issue with increased calls from clients in need, this resulted in lenders moving staff from advisor lines to make them available for customers and this just took wait times for advisors to ridiculous levels e.g. 52 minutes for HSBC, one hour 36 minutes for Barclays.
“It amazes me how during good times and bad, with increased work for all, Coventry Building Society still manage to answer all calls in less than a minute.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
