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Brokers burn midnight oil in vain effort to secure Woolwich products

Brokers have been staying up until midnight in an attempt to place deals with Barclays after it reduced its funding tranches for intermediary products.

The lender, through its Woolwich brand, last week reduced tranches in a temporary measure aimed at controlling demand.
Barclays allows brokers to reserve products by securing funding online when it is released at midnight each day. But last week intermediaries found entire tranches gone within minutes of release.

Lea Karasavas, director of Prolific Mortgage Finance, says last week he was unable to secure any funding despite staying up until midnight on two consecutive nights.

He says: “All the funding was gone within 30 seconds and I know other brokers who were similarly disappointed despite staying up.
“I have been trying for the last 48 hours to get funds for a client but I cannot secure the deal and if the customer went direct they would be able to secure it straightaway. This situation is incredibly frustrating.”

A spokeswoman for Barclays says: “We are seeing huge demand following pricing movements from other lenders. We have therefore decided to reduce our tranches for a few days to manage demand. We have no plans to increase the rates on our products.”

She was unable to comment on whether customers would be able to secure a mortgage more quickly by going direct.

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