Products with short deadlines can boost business for efficient brokers

Mortgage deals that are available for seven days or less are good for brokers, says Ray Boulger, senior technical director at John Charcol.

Last week both Lloyds Banking Group and Accord Mortgages launched deals which were available for only a few days.

Boulger says lenders have launched the deals to fill lending gaps before the end of the year, but it is good news for brokers because it gives them access to competitive deals.

He says: “I think these short-term deals will become more common and can be good for brokers. With online application processes the deals can be done instantly and having a deadline for clients is good as it can help to secure a deal.”

Luke Atkinson, senior mortgage officer at Your Finance Today, says it is great news and that such deals should become commonplace.

He says: “These kinds of deals would increase business for fast and efficient brokers and highlight the inadequate and outdated working practices of others.”

But Dev Malle, sales and marketing director at Personal Touch Financial Services, says short-term offers will do little to stimulate the market.

He says: “The timescale is too short to encourage people who had no plans to borrow to do so. It is aimed at those who are already in the process of borrowing and will be tempted by the better deals.

“The lenders are trying to attract business before the end of the year.”

Accord is offering a two-year fixed rate product at 2.89% at 60% LTV, a three-year fixed rate at 3.19% at 60% LTV and a five-year fixed rate at 3.79% at 60% LTV, available for seven days until this Wednesday.

And BM Solutions offered two buy-to-let deals for seven days, which expired last Friday.

Both deals were available up to 75% LTV including a two-year tracker at 3.75% and a two-year fixed at 4.25%. Both rates had a 0.5% product fee.