Santander’s reduced appetite to lend in Q1 has caught its rivals on the hop, with infrastructure creaking in the wake of higher than expected volumes.
No doubt lenders are discussing whether to fill their boots now at current margins rather than risk competing later on in the year if Santander increases volumes.
Products that are launched and pulled quickly can create panic among advisers trying to secure a certain rate before it disappears.
In this haste it seems getting an application in quickly starts to take precedence over accuracy, with the consequence that the quality of applications has deteriorated.
Advisers send half-packaged forms needing intervention by lenders, which can lead to unnecessary delays.
An unintended consequence is the resurgence of mortgage placement desks and packaging facilities at clubs and networks. A rise in lower quality applications has led to lenders becoming amenable to taking business from a mortgage placement desk that packages cases for them.
Lenders increasingly want distribution filtered through one source from which they will receive quality cases. The upside for advisers is that it gives them access to lenders they otherwise might not have been able to deal with and speeds up the process.