Some in the industry have questioned how these short notice periods align with the forthcoming consumer duty, the deadline of which is fast approaching in July.
However, FTAdviser understands that the Financial Conduct Authority and its consumer duty will not present any new obligation on lenders on this front.
Lender pledge
Malik has launched a campaign to get lenders to introduce mandatory notice periods for lenders alongside fellow mortgage brokers Lewis Shaw, director of Riverside Mortgages and Jamie Lennox, director of Dimora Mortgages.
The trio are asking others in the mortgage sector to join with them in requesting lenders to introduce notice periods of 12, 24, or 48 hours before they withdraw rates.
“We understand why they need to move quickly but we are sure we can find a happy medium,” Malik wrote on LinkedIn.
The campaign is asking lenders to make changes and sign a pledge across four key pillars:
- Advance Notice: Before discontinuing any mortgage product, we pledge to provide a minimum notice of 24 hours to all affiliated brokers.
- Communication: We commit to clear, concise, and open communication channels. We will ensure that this 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 pledge to offer assistance where possible to aid brokers in their advisory role & work collaboratively with brokers to minimise any disruption.
- Review: We will periodically review this pledge in consultation with brokers to ensure its effectiveness and make any necessary adjustments that can further enhance the relationships and trust among all parties.
jane.matthews@ft.com
