Just over 76% of brokers have said the level of notice a lender gave them regarding the withdrawal of a product would impact their loyalty to the lender, according to Castle Trust Bank.
Research carried out by the lender as part of its ongoing Pulse surveys found that over 60% of brokers said they would be less willing to use a lender if they thought the level of notice provided was unreasonable.
Nearly 16% said that product withdrawals would always impact their decision.
Despite this, nearly two thirds of brokers said they are sympathetic to lenders needing to reprice at short notice.
The research found that the largest group of brokers (29%) think 48 hours is an acceptable amount of time for a lender to provide for the submission of a full application on a product where they have already received a positive DIP, with a further 24% believing that five working days was acceptable.
Just over 60% of brokers said the main challenges of short notice on product withdrawals was managing their clients’ expectations and the next biggest hinderances cited were the extra time and administration involved and needing to gather supporting documentation.
Anna Lewis, commercial director at Castle Trust Bank (pictured above), said: “Short notice product withdrawals have certainly been a key challenge in recent months.
“However, our research found that brokers are, on the whole, sympathetic to lenders in this situation — they just want a reasonable amount of notice to enable them to better serve their clients.
“The study highlights the importance of certainty, particularly in an uncertain environment and serves as a reminder of the critical role of communication for brokers and lenders to work together for the ultimate benefit of the customer.”
