The building society cited unprecedented demand from the market as the reason for the move
The Nottingham for Intermediaries has pulled its entire range of mortgages with immediate effect from the market to deal with an “unprecedented” level of applications.
It had not been possible to give brokers notice of the change amid the “fast-moving climate”, the building society said.
The move is temporary and to allow the lender to bring service back up to required levels, it added.
It follows Marsden Building Society last week withdrawing its range of mortgages, also citing unprecedented demand from the market.
Nikki Warren-Dean, head of intermediary sales at The Nottingham, said: The Nottingham for Intermediaries has received an unprecedented level of applications recently and it’s important we manage those volumes in a timely way for brokers and their clients.
This short-term measure will allow us to work through all outstanding cases and provide as many positive outcomes as possible, she said.
She added: We will return to the mortgage marketplace with a range of competitively priced products as soon as possible and communicate product news to brokers in the first instance.
Homes listing site Rightmove this week warned the UK property market is highly congested and suffering delays with almost 40 per cent more transactions currently proceeding compared to the same period last year.
Chris Sykes, mortgage consultant at Private Finance, said: These high levels of demand and delays to processing are not limited to Marsden and the Nottingham.
There are several examples of lenders across all sides of the market, mainstream banks, specialist lenders and specialist buying societies, that have had overwhelming demand lately since the stamp duty cut, he said.
Some service levels are two weeks plus for an underwriter, where traditionally two or three days would be expected, this delays sales and can leave a bad taste in the mouth of a borrower which is not how a lender wants to start their relationship with them, Sykes said.
He said, hopefully any withdrawals from market are very much temporary especially when lenders have specific niches.
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