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Legal & General Network exits Santander’s fast-track facility

Legal & General Network has opted out of Santander’s fast-track facility.

The network says it has made the decision because of the degree of scrutiny the lender is placing on this business and the process issues it can foresee, coupled with the potential commercial impact.

L&G requires members to obtain evidence of income in all cases prior to submission of a mortgage application, therefore, it says the move should have no impact on brokers’ businesses.

In an email to brokers today, it says: “Lenders are placing increasing emphasis on the overall quality of packaging in addition to their focus on fraud risk and overall business performance.

“Poor quality packaging significantly increases the risk of advisers being removed from lender’s panels, or sometimes entire firms if issues are systemic/cannot be contained.

“Clearly this is something we need to avoid both commercially, from a risk perspective and also for our customers to ensure we recommend the right product and the application process runs smoothly for them.”

This week Mortgage Strategy reported that Abbey for Intermediaries has notified around 140 advisers that they will no longer be able to use its fast-track facility following a review of their business performance.

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  • John Crescens 17th May 2012 at 11:54 am

    Fololowing the thread 16th May 6.59pm,surely if the introducer does not or cannot correctly interpret salary advices ,one wonders whether they are in the right business.A simple question to the applicant/s would resolve the issue unless they are not aware of the deductions,if so should they be borrowing.

  • Richard Campo 17th May 2012 at 10:17 am

    I wholly agree with L&G on this. Any broker worth their salt will have the information they need IN ADVANCE of the application ever touching the lender, that is what a good broker does.
    Therefore the time saving arguement is redundant as you can upload docs direct to Abbey. Possibly you’s save a day or two, in the scheme of things that shouldbn’t be an issue.

  • Phil 16th May 2012 at 6:59 pm

    anon at 10,53. Yes you have mi interpreted my comment. it is the responsibility of all parties involved to ensure the mortage is affordable and that the income declared is in fact accurate. I do think though that some brokers do not properly interpret the deductions from salary and therefore end up with the wrong figure hence why all the hassle further down the line.

  • John Crescens 16th May 2012 at 10:53 am

    Ref anonymous timed 5.13pm.Whilst it is the lenders responsibilty to satisfy its criteria surely as an introducer there is a responbsiblity to ensure repayment ability etc is correct otherwise how can you give proper advice or have I misinterpretted your comments wrongly.

  • Scott Rochester 16th May 2012 at 9:04 am

    I do not understand the comments here. Abbey have made a commercial decision to allow some cases to fast-track to speed up processing, for which I am sure all brokers agree is a good thing. Networks all require brokers to hold proof of income anyway so you should have all the documentation Abbey need should they audit the file. Yes, the audit process adds a delay to the process but surely brokers would prefer to have the fast-track facility there? If brokers are continuing to abuse the fast-track system then this is a failing with the networks compliance regime if documents are not provided to verify the declared income.

  • SOX 15th May 2012 at 8:16 pm

    I agree with last comment, even when my cases are given Fast Track i send all documentation in for fear of some kind of come back later down the line, the scrutiny of payslips when it comes to things like London weighting, car allowance,overtime and bonus and deductions for pensions/student loans etc means there is room for mis- interpretation and i could not rest easy knowing a client ‘could’ have their offer pulled last minute, i’d rather have upfront verification and know everything is fine. That said i’d also like an equal playing field when it comes to rates, so we can all hope!
    Just to counter this I recently had clients come and see me after being told ‘in branch’ with Santnader that they could borrow £413k so happily went and placed an offer on a property, turns out the ‘in branch’ adviser had not checked any of their payslips and crucially ‘self employed ltd company’ accounts and the clients could acheive no where near this, guess who had the happy job of smashing all their dreams, and these were both existing Santander mortgage holders. Do we really still need to keep justifying ourselves?!

  • Daniel Meadows 15th May 2012 at 8:05 pm

    I think the Abbey Fast Track system is very important as it speeds up the application process time. Networks requesting proof of income for the file should be expected, fast track is to speed up the process (what we as brokers want). Having proof of income on file shows that we have advised and recommended the client can afford. If you do not have proof of income on file you are not doing your job properly.

  • Derek Frost 15th May 2012 at 6:40 pm

    Having never ever seen the benefit of their ‘Fast Track’ system, the apalling inconsistencies in their underwriting over the past few months has been the last straw, and we have also today exited from ‘Fast Track’!

  • Mozmil 15th May 2012 at 6:09 pm

    L&G refuses to be controlled and bullied by Santander as well as other lenders. Brave and bold network

  • Phil 15th May 2012 at 5:13 pm

    we should all insist all cases are fully underwritten. The responsibility should lie with the lender, I wouldnt lend someone £100k without checking they can afford it, so why should the banks?

  • BBC Scot 15th May 2012 at 5:01 pm

    I do believe that Mortgage Intelligence and Mortgage Next have already agreed to drop the Fast Track through Abbey.

  • Anon 15th May 2012 at 4:56 pm

    Mortgage Next and Mortgage Intelligence took the same decision weeks ago after consulting with its Brokers.
    No experience as havent placed business with Santander for a while.Declining business and then removing the broker from fast track – understandable. Stories of accepting the business then with holding the proc fee mmmmmmm?
    Nah you keep your fast track and I’ll keep my proc fee. I’ll have it fully underwritten and if you dont like it I’ll place elsewhere. Clear fair and not misleading -thats me all the way!.

  • Roger Travis 15th May 2012 at 4:45 pm

    All we now need is for the other major network to follow suit, and it will bring their processing system down. Maybe then they will have a rethink about this, or at least make every application fully underwritten.