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Application delays annoy brokers most

During my latest round of member visits I asked intermediaries what is frustrating them in the market and how we, as their mortgage club, can help.

Previously, generating enquiries or the advice process itself were common irritations, but it appears these are no longer major issues. The hot topic was the length of time it can take to get a mortgage through from start to finish.

Old frustrations such as lack of business are less likely to affect good firms these days as they tend to have large client databases to revisit and an advice process that runs smoothly.

It is once a suitable product and lender has been agreed that they can face time challenges.

In general the feedback is that it can take up to three times longer to nurse a case through the various stages of processing than it used to, even if it has passed the lender’s decision in principle system.

Brokers say that despite having a DIP it is no longer possible to assume a case will go through.

We are frequently asked by members if we can assist in these cases, as hold-ups also impact on a broker’s ability to move on to the next transaction.

There are responsibilities on both sides, with advisers having the obvious one of sending fully completed cases with all relevant documents.

In truth, brokers, clubs and lenders need to continually improve their systems and procedures to ensure the process is as smooth as possible.

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  • Mary Lockyer 21st May 2012 at 10:15 am

    A case that was perfectly packaged (the underwriter called to verify everything as there bar the valuation) the policy being to do this before instructing the valuer, the offer took 12 working days to issue, this has got to be deliberate delaying tactics, even getting the case offered as urgent (because exchange was needed) that took 3 working days. There were no outstanding questions at all.

  • Mike 19th May 2012 at 10:30 am

    I am finding that even when a mortgage is fully completed and includes all known documentation, that there are still delays. All of a sudden, questions that aren’t on the application form are asked. Many of theses questions are superfluous and I think ‘stalling tactics’. I think that lenders don’t have the ‘money’ and are delaying releasing the funds until they do (or at least until it matches their business mix).