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.