View more on these topics

New lender entrants slated

GMAC-RFC has blasted new lender entrants for promising too much and not delivering.

It says that many new lenders have tried to break into the market with low rates but have failed to deliver on service, leading to backlogs and dissatisfied borrowers.

Jeff Knight, director of marketing at GMAC-RFC, says: “Some of these lenders should have known better.

“When you have a start-up you can have an advantage with technology but only one lender has followed our innovation on point-of-sale offers – the others have missed a trick.

“If they had invested in technology they would not be experiencing these problems.”

He adds: “Technology can enhance service. Packagers and intermediaries want to be confident that cases will be accepted, that offers will be made and cases will complete quickly. But some new lenders have betrayed this confidence.”

New entrant Advantage admits it had a “small blip” in service levels after the Bank of England upped the base rate in January but insists this wasn’t down to problems with technology.

Kate Huet, marketing director of Advantage, says: “We are confident about our technology. We are a LIBOR lender so when the base rate rose in January and other lenders pulled their products we were left at the top of the sourcing systems.

“We changed our rates as soon as we could but we wanted to give brokers a chance to get their cases in. There was some delay because of the volumes coming in but this was a short blip and wasn’t a huge problem.”

DB Mortgages, which has been re-peatedly criticised for service problems since its launch last year, declined to comment.

Recommended

Cummings hails regulation of claims firms as victory for AMI

Chris Cummings has hailed the upcoming regulation of claims management firms on April 16 as a lobbying victory for the Association of Mortgage Intermediaries.In his opening speach at the Financial Services Scotland conference, held in Glasgow today, Cummings hit out at the “ambulance chasing brigade” and praised the upcoming regulation set to hit them.He told […]

InterBay launches seminars in Northern Ireland

InterBay has launched seminars in Northern Ireland, to educate brokers about commercial mortgages.Anna Bennett, head of marketing at InterBay, says: Following the successful inception of InterBay in England in May last year, we started operating in both Scotland and Northern Ireland in October. I am delighted to announce that we have just kicked off with […]

Borrowers demand to be kept in the loop

Mortgage customers would like to be kept better informed about how their applications are progressing, research from mform.co.uk reveals.Results from the online mortgage companys survey into lender service levels show that borrowers feel this is the weakest part of the mortgage process, as it received a 67.6% satisfaction score, the lowest out of 16 service […]

Money Partners Touch appoints BDM

Money Partners Touch, the direct-to-broker channel of Money Partners, has promoted James Hope to the role of business development manager for London and the Home Counties.Covering the capital and the areas of Hertfordshire, Essex, Kent, Surrey and Buckinghamshire, Hope will be responsible for actively building relationships with brokers and IFAs.He will report directly to sales […]

Newsletter

News and expert analysis straight to your inbox

Sign up