Coronavirus  

Adviser tells brokers to 'cut lenders some slack'

Adviser tells brokers to 'cut lenders some slack'

Mortgage brokers need to cut lenders some slack in these trying times, a senior financial adviser has claimed. 

Scott Thorpe, director and co-founder of The Money Group , a network of 11 nationwide offices totalling some 50 advisers, called for the whole industry to support all the lenders during the exceptional market conditions created by the Covid-19 crisis.

Saying now is not the time for "woe is me" attitudes, Mr Scott asked brokers to understand that the whole industry is caught up in this "perfect storm".

Last month, the government called for the housing sector to shut down for the foreseeable future. At the same time, many lenders across the mainstream and specialist lending sectors have been forced to alter their criteria or withdraw their products will little or no notice; for example, West Bromwich pulled its entire range and launched a more streamlined, simplified one.

Mr Thorpe said: "Lenders are currently dealing with the perfect storm of declining market conditions, isolated staff, continuing to help support businesses and customers while dealing with up to 10,000 calls a day from people asking for a payment holiday.

"It is disappointing when any market deteriorates quickly, even more so when it is linked with people refinancing or trying to purchase a new home. But no lender has asked to be put in this position and with job security now volatile, lenders have to lend responsibly.

"While they have a duty of care to their customers they also have a duty of care to their shareholders, their staff and the wider economy. Now is not the time for 'woe is me' now is the time for understanding and industry collaboration."

According to Mr Thorpe, The Money Group has issued a blanket ban across all its staff not to publicise anything directed at lenders unless it is support and encouragement. 

To further combat negativity, Mr Thorpe called on brokers and others in the industry to unite in this and remove the negativity from social media feeds and client communications.

He added: "We should all be working together to support each other and help each other get through this crisis. We say to our brokers that the lenders paid you during the good times and it is only right we now support them in the bad times. 

"We are confident that the market will come roaring back in due course. But, in the interim, some lenders may exit the market temporarily or restrict lending. If that is the case let's rally around them and let them know we will be there for them once normality returns.”

His comments came as broker members of the Society of Mortgage Professionals have been urging "responsible" behaviour and working round the clock to make sure their clients are not being left in limbo during this time.

According to the SMP, brokers have been going the extra mile to help consumers worried about their finances during the coronavirus outbreak.