The Intermediary Mortgage Lenders Association (IMLA) and the Association of Mortgage Intermediaries (AMI) have partnered to produce an online guide for mortgage professionals to better understand lender funding, product pricing and availability, in light of the current mortgage climate.
The guide explains the different types of funding used by mortgage lenders and how the type and split of funding sources impact individual providers’ ability to respond to interest rate changes.
The guide is designed to be accessible for anyone in the industry and assumes no prior knowledge, while explanations are provided by technical specialists in the lending sector.
Robert Sinclair, CEO at AMI, said: “Interest rate volatility is the new normal, and it is causing a great deal of stress and difficulty for advisers and their clients.
“In this environment, understanding the rationale behind mortgage pricing and product availability can give brokers valuable insight to help their customers make good decisions.
“We will continue to talk to lenders and other trade bodies about reasonable notice periods for product withdrawal.”
Kate Davies, executive director at IMLA, added: “We hope this guide will clarify the motivations and constraints lenders are operating within, and promote better understanding between lenders and brokers.
“It is essential we evolve as an industry to meet the demands of a shifting financial climate, and we are calling on all parties to maintain open dialogue.”
