Paradigm has launched a product withdrawal directory for advisers to help provide clarity amid the current volatility gripping the market.
The mortgage and protection distributor said the director is the first of its kind and includes the product withdrawal policies of over 50 lenders currently on the Paradigm panel.
The directory shows each lenders’ expected product notice period policy split between: less than 24 hours; 24 hours; 48 hours; and 48 hours-plus. It also shows those who have not yet specified or have no set timeframe.
Paradigm's director of mortgages Richard Howe noted that product withdrawals have been a hot topic of late.
“There have been calls for an industry-wide commitment to at least 24-hours’ notice and we know that very short notice periods for either product pulls or rate changes, heap a significant amount of pressure on advisers and lenders which increases their workload considerably,” he said.
Our aim here is to provide an extra layer of information and education to advisers which they can build into their research work for clients, and they can utilise in order to come to their final product/lender recommendation,” Howe added.
Paradigm plans for the directory to be a “living and breathing document” that firms can tap into whenever they need and where information on lender withdrawals will be kept up to date.
The directory covers each individual lender, the notice period they have outlined and, in most instances, a detailed commentary from each explaining the policy and its past performance.
The mortgage market has seen mass withdrawals of products this month as a result of worse than expected inflation and rising interest rates.
In response to this, the government yesterday announced the creation of a mortgage charter to support struggling mortgage borrowers.
jane.matthews@ft.com
