Brokers have been left scrambling to secure existing mortgage lending rates for clients as Barclays followed other lenders and hiked its rates on residential and buy-to-let mortgage products.
In an email sent to intermediaries last week (June 23), Barclays announced that changes to its lending products would come into effect from the following day (June 24).
The email stated that current rates could be secured if a mortgage information sheet was generated for the loan needed on the required rate no later than that same day (June 23).
However, one mortgage broker explained to FTAdviser that he tried to generate an MIS for a loan with the current rate, but the system cut off at 9pm on June 23.
As a result he was unable to secure the rate, which he said will leave his client £6,000 worse off over the next 10 years.
Speaking to FTAdviser he said: “Something has to give soon. Lenders are not treating customers nor their broker partners fairly with this sort of behaviour. I get they have their own challenges but if you are cutting things off at 9pm, just say so and we will all work to that timescale.”
A Barclays spokesperson told FTAdviser the issue was caused by planned maintenance to its website.
They said: “Unfortunately, our broker hub was undergoing planned maintenance at around 9pm on the evening of 23 June, meaning there was a short period where brokers were unable to generate a mortgage information sheet. We sincerely apologise for the inconvenience this has caused.”
FTAdviser understands that Barclays are in touch with any brokers affected.
Other mortgage brokers also expressed confusion and frustration over the way the increases were introduced by the lender, with some complaining the email was unclear on details.
One broker said: “The email was very vague with no time mentioned for the cut off. I queried if rate switches were affected and received a live chat reply that was total gobbledygook.”
Trinity Financial’s product and communications director, Aaron Strutt said: “Brokers are getting used to product changes without any real notice. We explain to our clients the rates we quote them will not be around for long and they need to give us the documentation promptly to secure them the best deals.”
The increases from Barclays follow a stream of increases from other lenders
Some lenders have raised all their rates above 3 per cent.
For example, all of HSBC's fixed rates now sit above the 3 per cent mark, this is compared to the sub 1 per cent rates some lenders, such as Nationwide, were offering last year.