The Importance of The 24-Hour Pledge - Why Mortgage Brokers Are Fighting Your Corner
In the past few weeks, we've witnessed a surge in volatility within the mortgage markets. This has led to an unforeseen ripple effect where numerous mortgage lenders have begun retracting their mortgage products, often only providing a few hours of notice.
In response to this, a campaign titled "The 24-Hour Pledge" has been kickstarted by three mortgage brokers - R3 Mortgages director Riz Malik, Lewis Shaw, and Jamie Lennox. The aim of this campaign is to encourage mortgage lenders to commit to providing the broker community with at least a 24-hour notice before withdrawing any mortgage deals. This critical window allows us to converse with our clients about available options and complete & package mortgage applications. We're confident that this proposal aligns well with the principles of fair client treatment. The Pledge can be seen below:-
“We acknowledge that stability, predictability, and open communication are fundamental in cultivating a productive, trusting relationship that benefits lenders, brokers, and customers alike.
We understand the issues caused by the sudden withdrawal of products, especially in a volatile financial market, which can induce anxiety and stress for brokers who are critical partners in our industry.
In light of these considerations, and in a shared commitment to fostering a more transparent and cooperative industry environment, we would like lenders to voluntarily commit to the following:
Advance Notice: Before discontinuing any mortgage product, we ask you to pledge to provide a minimum notice of 24 hours to all affiliated brokers. This notice will include pertinent details such as the product being withdrawn, the reason for the withdrawal, and the exact time of the withdrawal.
Communication: We ask lenders to commit to clear, concise, and open communication channels. We request that advance notice is distributed through multiple channels to reach every broker and give them ample time to adjust their strategies and advice for their clients.
Support: We ask lenders to commit to working collaboratively with brokers to minimise any disruption and ensure a smooth transition for all parties involved.
Review: We would like to periodically review this pledge in consultation with lenders to ensure its effectiveness and make any necessary adjustments that can further enhance the relationships and trust among all parties.
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While we are glad to note that several mortgage lenders already follow this considerate approach, there's room for wider adoption. Despite the prevailing uncertainties in our current times, we firmly believe that a day's notice is a feasible commitment for lenders. Moreover, this step could also offer a much-needed buffer to our clients in light of the ongoing cost of living crisis.
The Pledge and its aims have been warmly received and endorsed by mortgage professionals nationwide. New Leaf Distribution, our network, emerged as the first mortgage network in the UK to support this Pledge. We're immensely proud to be part of such a forward-thinking organisation.
Our mission doesn't end here. We will persistently advocate for improvements that we believe are essential for our clients. The path may at times seem steep, but we're convinced that a collaborative approach with our lending partners will result in mutual benefits. After all, when we work together, everyone wins.