Copy article

Lender product withdrawal

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 27. September 2022

Looking to speak to mortgage brokers about lenders withdrawing products. 

  1. Have more lenders been withdrawing products? 
  2. What are the factors for the decision? 
  3. How does this impact your day to day and how are you communicating with clients? 

7 responses from the Newspage community

Copy all

Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
With 10-year gilt rates set for their biggest ever monthly increase, the bond market is in meltdown following Kwasi Kwarteng’s emergency budget announcement last week. With so much volatility in the financial markets following the biggest tax cuts since the 1970s, it's no surprise that lenders are withdrawing from the market until some level of stability returns. Mortgage brokers are a feather in the wind, jumping from product to product, in an attempt to get the best deals for their clients, yet fully aware that those recommendations may not be available by the time of application.
Copy

Editor
Imran Hussain
Director at Harmony Financial Services
There are many lenders now pulling their product ranges, and no one is exempt specialist, or high street lenders are between a rock and a hard place right now, as with swap rates out of control, some lenders are likely unsure on how to price their product range so until the madness calms down lenders will be coming in and out of the market in quick succession. Whilst ensure all communication with clients right now is calm and collected clients who watch the news will understant that the market is still open but deals may disappear without much notice so there is very little time to sit around on dwell.
Copy

Editor
Mike Staton
Director at Staton Mortgages
Accord have just withdrawn all residential Mortgages Natwest have decreased the validity of their Decision in Principle from 3 months to 1 month. The mortgage market is changing that quickly, the lenders do not know where they stand, just because you qualify for a mortgage today, it does not mean you will qualify for it next month and that is even assuming that the mortgage product is still there
Copy

Robert Payne
Director at Langley House Mortgages
Lenders are withdrawing products from the market ahead of a potential emergency meeting held by the MPC. Lenders, like most of us, are not quite sure what's happening so it is a risk to keep current mortgage rates available. I suspect lenders will re-enter the market once the result of any emergency meeting has been confirmed but it doesn't look like good news for borrowers.
Copy

Rob Gill
Managing Director at Altura Mortgage Finance
All businesses struggle with uncertainty and mortgage lenders are no different. The extraordinary market volatility surrounding interest rates seen since the mini-budget means lenders simply can't hold mortgage rates for more than a day or two. Many are therefore deciding it's better to pull out of the market entirely until things settle down.
Copy

Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
With some lenders withdrawing their products on Monday, or at least giving some notice to withdraw their products, it appears that lenders are being very cautious, as such a drop in the pound sterling and the ramifications of this were not expected. We may see more lenders do the same this week, but these lenders will come back, albeit with higher rates, once they know and are confident in how the Bank of England is going to act on the falling pound.
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
It's just pure insanity at the moment. Normal people are paying for the successive failures of government. Luckily, anyone who's already submitted an application has secured their rate but we're going to have to clear the decks to deal with the influx of people who want to talk to us about securing a new deal.