If you’ve ever found something you want to buy online, only to realise that it has sold out by the time you reach the checkout, you will know how frustrating this can be.
Sadly, increasing numbers of borrowers are encountering the same problem when it comes to securing their preferred mortgage deal.
A recent report in Mortgage Strategy revealed that the average shelf-life of a mortgage deal is now just 15 days. With many lenders withdrawing products with little to no notice, securing the interest rate you’re looking for can be a minefield in what many experts have called an “unfair” market.
Read on to find out more, and how we can help you secure the deal you want before a lender withdraws it.
97% of mortgage professionals says lender behaviour is at odds with good practice
In recent weeks, many lenders have withdrawn their mortgage rates at short notice.
Mortgage Strategy reports that some lenders have even changed their rates twice in a week, while FTAdviser reports some have given customers and mortgage professionals just 30 minutes’ notice of pending changes.
This can be very frustrating for borrowers who may then be unable to secure the rate they want.
Many also believe that lenders are acting against the spirit of a new Financial Conduct Authority (FCA) initiative designed to improve outcomes for customers.
In 2023, the FCA introduced the “Consumer Duty”. This initiative is designed to ensure better outcomes for consumers, requiring financial services businesses to act in good faith and avoid causing foreseeable harm to customers.
In a recent poll reported by FTAdviser, 97% of mortgage professionals said that a lender withdrawing a mortgage deal with little to no notice does not align with the spirit of the Consumer Duty, and “nor can it be justified by lenders”.
Finding the right deal can consequently be something of a minefield. You might find an excellent rate today, only to discover that the deal has been withdrawn tomorrow when you come to make your application.
Luckily, there are ways that working with a mortgage broker can help you.
We can help you to secure a deal in advance of your existing deal ending
When it comes to getting a great mortgage deal, being proactive can reap dividends.
If your existing fixed-, discounted- or tracker-rate deal is set to end in the next six months, now’s the time to start thinking about what you would like to do next.
We work with many homeowners whose deals are expiring and our experience shows that starting early can offer many benefits. For example, it gives us enough time to conclude the remortgage ahead of time, meaning you don’t spend a period on your lender’s expensive standard variable rate (SVR).
We can also secure a deal now even if you don’t want the new mortgage to start for several months. Many lenders will honour rates that you secure now for three or even six months – and you may even be able to switch to a cheaper deal if rates come down in the meantime.
We can “book” rates for you
While many lenders have been accused of unfair behaviour by withdrawing products with little to no notice, most do give Altura some warning.
Coventry Building Society is widely seen as the leading lender in this area, with the mutual giving brokers two days’ notice before making a major product change. Moreover, in March 2024, NatWest pledged to give brokers 24 hours’ notice on mortgage rate changes where it can.
Experienced brokers like Altura can help you secure the mortgage rate you want by “booking” a deal for you.
In the short window a lender gives us, we can reserve the funds you need on your preferred product. In fact, we frequently work late into the evening on behalf of clients, submitting applications to lenders ahead of midnight deadlines to ensure our clients can take advantage of competitive deals before lenders withdraw them.
So, in an “unfair” market where deals are disappearing every couple of weeks on average, working with an expert can put you at a significant advantage.
Get in touch
If you want to find out how we can help you secure the mortgage deal you want, please get in touch. Email [email protected] or call us on +44 (0) 20 3411 0079.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
