Copy article

"Advising borrowers when lenders play the 'mystery rates' game is like doing a Rubik's cube blindfolded"

ended 21. October 2024

Why? Just why? Brokers have slammed lenders for announcing that rate changes are incoming without actually revealing what those rates are. HSBC was the latest offender today but a number of other lenders do it. One broker said: “When lenders announce rate changes without disclosing the actual rates, it makes our job as brokers significantly harder.” Another was, well, bemused: “Trying to advise borrowers when lenders play the 'mystery rates' game is like doing a Rubik's cube blindfolded.”

8 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Dariusz Karpowicz
Director at Albion Financial Advice
Advising borrowers when lenders play the 'mystery rates' game is like doing a Rubik's cube blindfolded. It's becoming quite the frustrating trend in our industry. As brokers, we pride ourselves on providing accurate and timely advice to our clients. When lenders announce rate changes without revealing the actual rates, it leaves us in an awkward limbo. We can't confidently discuss options with borrowers or make solid recommendations until these phantom rates materialise. This lack of transparency creates unnecessary challenges in an already complex mortgage landscape. It forces us to either hold off on client conversations or make tentative suggestions that might need revising once the actual rates emerge. A bit more clarity from lenders would go a long way in helping us serve our clients more effectively.
Star Quote
Copy

Hannah Bashford
Director at Model Financial Solutions
This definitely makes our job harder and the lack of transparency is frustrating for several reasons. It potentially gives unrealistic business volumes for us and lenders, because you are likely to secure a rate in case it increases then if it decreases you have to apply for a new rate. It creates panic for both advisers and clients, leading to a more stressful transaction and compliance processes mean that we are often having to do double the work, just-in-case. It's no wonder this is an industry struggling to attract people under the age of 25 when we are up against this kind of thing.
Star Quote
Copy

David White
Chief Operations Officer at Simply Lending
This undoubtedly makes the broker's role more difficult in already challenging times. Communication is always welcome, but it is only helpful when there is a clear message to act on.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
When lenders announce rate changes without disclosing the actual rates, it makes our job as brokers significantly harder. We’re left trying to advise clients with uncertainty, telling them rates might change tomorrow — maybe better, maybe worse — but we simply can’t be sure. It creates unnecessary mystery and makes it challenging to provide clear and timely advice.
Copy

Editor
Simon Bridgland
Director at Charwin Private Clients
It's not that it makes it harder but it does mean that borrowers and advisers will often pause submission of applications until rates are shown. That means, of course, people potentially losing their current front runner mortgage product if that gets pulled while they are waiting. It can sometimes be a tight-rope walk for borrowers.
Copy

Steven Hargreaves
Mortgage and Protection Adviser at The Mortgage Co
I have recently made a similar comment to another lender that does the same; they know what the new rates are, so why do some lenders make it more difficult than they need to?
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
An email arrives telling you that something is changing, but they are not going to detail what. How is that helpful to anyone? HSBC at least do say which rates are going up and which are going down, despite giving no clue as to by how much. Other lenders do not even tell us which direction rates are moving, which makes our job all but impossible. Given that I cannot imagine the lenders don't know exactly what the new rates are going to be, it just feels very cloak and dagger for the sake of it. Please just tell us what rates are changing, what they are changing to, and on what date, so we can deliver the right advice to clients at the right time.
Copy

Patricia McGirr
Founder at Repossession Rescue Network
Announcing rate changes is an utterly pointless exercise unless you state what those changes actually are. It causes confusion and has borrowers and brokers pressing hold on transactions. A total waste of time.