Booking lines are on the right lines

15 March 2010

I have watched the commotion surrounding Woolwich’s booking line become ever more raucous and I think it’s time to share my observations on the subject.

I’ve always thought the booking line is a good idea as it shows the regulator that Woolwich is lending within its capacity.

I also feel it removes some of the time-wasting that lenders have to endure when brokers send in applications on a wing and a prayer just to see what happens.

The Woolwich system is no different from that of Cheltenham & Gloucester, which charges a £99 fee on application.

Similarly, Coventry Building Society and Nationwide Building Society charge fees upfront and while they limit funds distribution in other ways, by paying your fee you are booking funds.

At a time when all of us are moaning at reductions in proc fees and having to do twice as much work for smaller fees, surely we should embrace changes made by lenders to ensure they receive only relevant applications.

Time is money as they say, and if lenders are wasting time it will be us who suffer.

Lenders’ fund-booking policies are at least a step towards the longevity of proc fees.

You only have to consider for a moment the situation at the Royal Bank of Scotland, which charges £499 if an offer does not proceed.

Change is inevitable so I say embrace booking lines, especially if you enjoy receiving payment for the hard work you do.