Experts slam lenders for ultra-short notice repricing of mortgage products

Experts have lashed out at lenders who reprice products, sometimes with just a few hours’ notice.

And many suggest that lenders are falling short of fulfilling the new expectations created by Consumer Duty guidelines.

Last week the Coventry Building Society was praised by brokers for giving 48 hours notice of changes; days later, Virgin Money reportedly gave just three hours.

Riz Malik of R3 Mortgages says: “It baffles me that lenders have once again started to reprice products with negligible notice periods, a practice that can see consumers pay much more for their mortgages.

“As countless lenders continue to report billions in profits, the practice of pulling products with little, if any notice, is throwing borrowers under the bus. It's crucial to keep the customer's interests in mind with every transaction, and withdrawing products at short notice should come to an end.

“Once again, it is down to the broker community to defend their corner. Last year, a group of brokers under the banner of The Broker Collective initiated a campaign urging lenders to commit to a 24-hour notice period before discontinuing products, as the practice was rife.

“This movement gained swift support within the broker community, yet lenders still hesitated, often pointing to financial concerns. Such a minor concession should have a negligible effect on their overall business.”

Darryl Dhoffer of The Mortgage Expert is similarly angry, commenting: “Is a 24-hour notice period really too much to ask for a financial decision as important as a mortgage?

“It's time for lenders to step up and show some transparency. Pulling products sometimes with as little as 2 hours' notice surely undermines the principles of Consumer Duty? Consumers deserve fair treatment and informed decision-making, not sudden changes jeopardising their financial plans. 

“Lenders should adhere to responsible lending practices, and explore ways to minimise the impact on borrowers during necessary product adjustments. A 24-hour notice period offers this compromise.”

Robert Tim of Sunland Mortgage Brokers even suggests there are personal prices to be paid by those having to respond at speed to short-notice changes.

He says: “I understand the conditions that lenders work under, more should be done to consider the mental health of mortgage brokers, and particularly allowing a work/life balance that I am sure the majority of lenders give their own staff. 

“Pulling rates with sometimes 30 minutes' notice is completely unacceptable to the broker and borrower alike, and surely falls foul of Consumer Duty in one way or another. 

“A recent trend seems to be pulling rates late in the afternoon but 'allowing' brokers to submit applications until 8pm on an evening. Do we not have families ourselves? Should we miss putting our kids to bed to do right by our clients? It's really frustrating.”

These experts gave their views to the Newspage service.