TMB is contacting brokers and packagers today telling them all cases being processed must be submitted by the middle of August.
And one unnamed intermediary is speculating the move is more a result of HBOS trying to limit its market share and reduce its exposure to self-cert than to clear case backlogs.
The move comes just a week after another HBOS subsidiary, BM Solutions, hiked its self-cert arrangement fee to 1% to limit business in that sector.
em-financial managing director Roger Morris says: “This is the most incredible thing I have ever heard. If TMB was to change its model to make better use of packagers we could handle the overflow and it wouldn't have to close to business.”
He says Platform is now the most competitive lender and is recommending brokers use em-financial as their packager.
Morris adds em-financial will be expanding its business to cope with increased volumes.
Mortgage Strategy is awaiting comment from TMB.