TSB gives brokers 25 minutes' notice of rate changes - reaction

TSB has been unfair in giving such a short amount of notice to withdraw mortgage products and increase rates. Almost nothing can be done compliantly in 25 minutes. It shows how some decision-making by lenders is disconnected from the real world of delivering mortgage advice. This behaviour is not aligned with the spirit of Consumer Duty, as we can't be pressuring people into proceeding with a recommendation. Even if we could guarantee to make contact with clients that quickly to give them such a ridiculous deadline, it would not be the right thing to do. Coventry Building Society is the champion in this area, promising (and delivering on said promise) 48 hours' notice before any rate changes. TSB and indeed any other lender with a commitment to the broker community in place should take note and implement it accordingly.

We have seen lenders withdraw products with little or no prior notice in the past. However, we haven't seen products being withdrawn at such short notice since October last year and before that, it was at the start of the pandemic. This is not common, not acceptable and certainly not treating customers fairly. All lenders should have to give a minimum of 24 hours' notice before a product is withdrawn.

This is reminiscent of September and October but we haven't seen rates being withdrawn this quickly for a long time. It is incredibly unfair to the customer as they have no time to consider their options and make an informed decision and it is impossible to advise clients accurately in this environment, so I hope other providers do not follow suit and I would like to see more providers making the same commitment as Coventry Building Society in giving advisers at least 48 hours notice. This would be in line with the new Consumer Duty rules and fairer to the consumer.

This short notice announcement is unusual. We have seen it in the past when the market was more volatile, but something this last minute has not been seen for a while. It's disappointing to be honest as it gives brokers very little time to act. I don't feel it is acceptable and shouldn't be done on a regular basis as I don't believe it sits well with Consumer Duty or treating clients fairly.

I wasn't affected by this but I have been saying since the end of 2022 that there should be at least a 48-hour notice period before a product withdrawal. How are we meant to notify clients and come up with a suitable alternative in 25 minutes? It is then the broker who bears the brunt of the client dissatisfaction and is simply not good customer service.

This is unusual. We last saw it happen when rates were going up rapidly last year. However, we are in a different situation now, so I expect this lack of notice to be an anomaly.

In the present circumstances, it is entirely inappropriate to operate in a manner akin to that of October 2022. For instance, a broker who recommended a rate to a client earlier on Tuesday may now face the predicament of being unable to process the application, necessitating the need to re-source and make fresh recommendations. TSB should take a page from Coventry Building Society's playbook and provide at least 48 hours' notice.

Thanks TSB, although they wouldn't do this without forethought. They will have their reasons and keeping a good service level may be one of them. It's not helpful and clients will be a bit upset, but it's one of those things we cannot change. This usually means other lenders will raise their rates a little, but 0.2% is not too bad.

In my opinion, there should be a minimum of 24 hours notice for mortgage product withdrawals, ideally 48 hours. A mortgage is most people's largest debt, so deciding on a product and having an application processed in under 30 minutes isn't realistic for most.

This seems like a disproportionate response from TSB. Back in October and November when rates were increasing drastically and quickly, I understand why lenders had to act quickly. However, this is just not the case currently. It has a detrimental impact on borrowers as they might either miss out or feel pressured into making a decision.