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From short notice to negative notice product withdrawals

ended 13. June 2024

Brokers will be all too familiar with short notice product withdrawals but one equity release lender today - Canada Life - alerted a broker on the Newspage News Desk to rate increases six minutes after they had been implemented. The attached email was received at 10:06am today, announcing rate changes that went live at 10am. Any thoughts, send them across.

2 responses from the Newspage community

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Simon BridglandVerified
Director at Charwin Private Clients
Brokers have been under immense time pressure with short notice product withdrawals, but now lenders now seem to think we are capable of time travel. Maybe if they upped their proc fees, we could at least all chip in and try to build a DeLorean. Canada Life’s email must have been stuck in maple syrup. To receive an email notification of rates increasing with effect from six minutes before the email was received is a smack around the chops for brokers already smarting from little or no notice from many traditional mortgage lenders. Although cases with illustrations already produced have a week in which to submit a case, it very much shows the broker community is an afterthought in some quarters.
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Kundan BhaduriVerified
Property Developer and Portfolio Landlord at The Kushman Group
As a property buyer, it is crucial for us to be able to plan our mortgage applications. Lenders absolutely must give notice to brokers before changing product rates. When brokers are informed in advance, they can then provide accurate and timely advice to the client, ensuring they can lock in a deal before it expires. Sudden rate changes without notice can disrupt the financial planning and can sometimes mean a sale and purchase that will likely fall through.