View more on these topics

Nationwide may return poor paper applications

Nationwide is considering taking a tough stance on paper applications by sending back poorly completed forms to brokers.

Ian Andrew, managing director of group intermediary sales at Nationwide, says the quality of paper applications is poorer than those submitted

He says: “We have a disproportionate amount of problems on paper applications. Brokers fill in online applications better than on paper because there are certain things you have to complete before you progress.

“This has been exaggerated because of short withdrawal times of an hour or two now. There’s panic from brokers with paper applications to get it off their desk and send it in to secure the rate before it goes up.”

Andrew says paper applications’ quality is deteriorating causing processing staff to chase information.

He says: “It’s something we are looking at and we may start to take a hard line on it by saying the application won’t be processed.

“We will then send it back to the broker until we have all the information. It is fair to the many brokers who do take the time to fill in applications

Mike Fitzgerald, sales director at Emba Group, says it is a good idea as it can have a knock-on effect on service levels for other brokers.

He says: “It’s rare that brokers have to do paper applications now but they have to make sure it is fully completed. There is no excuse.”

But Ray Boulger, senior technical manager at John Charcol, says lenders and brokers need to thrash out any issues.

He says: “Chucking cases back at brokers is an extreme move unless there is so little information that it can’t be done. It depends on what information is missing as some applications might be missing details that are not crucial to Nationwide approving the application but may be important later.

“It needs to be careful where it draws the line and not have a blanket rule that sends back any application with an error.”

Boulger believes a compromise could involve a booking system giving brokers more time to submit accurate applications without losing the rate.

Nationwide is also planning to move its shared equity application from paper to online-only.



Caption competition

Housing minister Grant Shapps and Prime Minister David Cameron meet Right to Buy applicants

Time for a new approach to asset allocation

Trevor Greetham, RLAM’s head of multi asset, introduces the recentlylaunched RL GMAPs. Asset allocation has become an increasingly difficult challenge for investors and advisers in the years since the financial crisis. Sometimes violent price swings in stock and commodity markets coupled with the collapse in the rate of interest on bonds have made it harder […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • liz 26th April 2012 at 12:22 pm

    1. £99 Booking fee – what is that for?
    2. You should know most of the stuff required on Nationwide’s fairly straightforward form at DIP stage so really these cases must be rare
    3. More than a few hours notice of rate withdrawlas should solve this problem on the main part
    4. Any good broker who does have a gap because of in-sufficent warning of rate withdrawals (theres really no other excuse) would send a memo confirming any gaps as soon as humanly possible SO at least give the broker a few days to get this memo to you rather than just posting back (some lenders has posted back for ages!)
    5. Works both ways, how about lenders tell us more accurately what they need at DIP stage (N’wide are a pain for this sometimes) rather than (when no changes) they ask for certain docs with the full app on acceptance of the DIP, then when you submit the full app (before an underwriter has actually looked at it) they aske for other stuff – I don’t care how much you ask for at DIP stage just be accurate so A we don’t look like idiots to our clients and B we can have s=the stuff ready to accompany the app the day we send it to you. Thank you!!!

  • Nick Ward 25th April 2012 at 11:17 am

    The main applications that require paper applications are ported cases and shared ownership/equity. I believe that Nationwide are working towards an online solution, so I am certain the numbers of paper aplications will be reduced once this happens.

  • Used to be a lender 23rd April 2012 at 3:20 pm

    If I was a lender with an online application capability, I would simply not produce paper application forms any more.


  • I Hate Paper 23rd April 2012 at 3:15 pm

    Yes – anon of 10.24 clearly thinks that it is OK to send incomplete or incorrect forms to a Lender.

    If I was a client, I would expect my broker to not only advise me on what product I should consider, but to ensure that my application is processed speedily. This can only be done if the application form is completed correctly.

  • jane Bennett 23rd April 2012 at 1:07 pm

    Clearly “anonymous” 10.24 a.m. thinks they are the only brokers submitting applications. Why should the lender have to phone for further information, just because the form is not filled in correctly. I always thought a booking fee was to secure the rate – not a fee payable in case a broker cannot do his job properly! Yes Nationwide – send the forms back – it may encourage slap dash brokers to do their job properly the first time round

  • We're all doomed!! 23rd April 2012 at 12:52 pm

    The Mortgage Industry is so far behind the Protection industry, it’s embarassing!!

    Simple things like paying a lower proc fee for paper based apps have been commonplace in the protection world for many years now. In fact, the vast majority of business is submitted online now. There really is no reason why paper apps should be so commonplace in the mortgage world.

  • Ballbag 23rd April 2012 at 11:30 am

    My experience with Nationwide’s paper applications is that the department is incompetent and in need of a serious sorting out. Even their BDMs and managers accept this.
    And my cases go with everything (and more) that they ask for originally, so it’s not sour grapes.

  • charlotte Dean 23rd April 2012 at 11:16 am

    Anonymous 10.24- the booking fee is to secure the rate and has nothing to do with processing the applications….

  • Anonymous 23rd April 2012 at 11:06 am

    Anonymous 23/04/2012- Fairly certain Nationwide have considered this already! The reason for not accepting these types of applications online is because they are usually more complex and require a human to make a decision. If it was just a case of making one phone call to the broker then it wouldn’t be a problem but past experience of underwriting tells me that it is usually more than one piece of information that is missing and quite frequently, salient information is altered throughout the application process. The customer is then led to believe this is due to delays with the lender, which is quite often not the full picture. I think however a common sense attitude should prevail and I am sure Nationwide will not be rejecting cases where only information is missing that can be resolved by one phone call. At anonymous 10.24 – you ask how much time does it take to make a phone call to the broker? About the same it takes for the broker to get the information correct first time maybe?!

  • Muhammad Shahid 23rd April 2012 at 10:24 am

    they are charging £ 99 booking fee for what,
    how much time it will take to make a phone call to the broker to ask some further information.

  • Phil 23rd April 2012 at 10:04 am

    Paper applications will inevitably be of a poorer standard due to the reasons stated above. The alternative is to amend the system so that it accepts the applications that are currently paper based. Or is this too obvious.

  • Derek Frost 23rd April 2012 at 10:00 am

    It’s getting worse, as Abbey ‘FoI’ last week rejected an on-line application because the 23 year term took the client three months in to retirement! This was described as a “system error” on the AIP. As Abbey’s system makes no provision for years & months, how can they depart from a ‘phone call to correct the issue. Instead, we had to fully re-submit the application!

  • Colin Payne 23rd April 2012 at 9:57 am

    There really is no excuse for badly completed paper application forms,but if lenders like Nationwide provided two days notice instead of 2 hours notice of product withdrawals then the problems they are experiencing may be reduced!!