Nationwide has confirmed it will return shoddy paper applications, after revealing 40% of cases submitted by brokers have information missing from them.
The lender is adopting the tougher stance from Wednesday May 16. Mortgage Strategy revealed last month that Nationwide was considering the move.
Ian Andrew, managing director of group intermediary sales at Nationwide, says: “We receive a high number of paper applications but their quality has deteriorated.
“Our processing teams are spending too much time chasing brokers for missing information. This is unfair on the brokers who take the time to fully complete the forms. At a time when our mortgage volumes are high, this is beginning to affect our service.”
Brokers submitting cases with critical data missing will be called by Nationwide to give them the opportunity to provide the information required. If the broker cannot do so the application will be sent back to them.
Aaron Strutt, head of communications at Trinity Financial Group, says it makes sense that Nationwide wants to speed up the process and improve the quality of applications.
But he says: “Problems can arise when lenders change rates and give brokers a deadline for submitting applications and brokers rush to fill them in to secure the rate.”