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Coventry withdrawal bucks industry trend
29 March, 2008
Coventry Building Society has pulled its mortgage range giving brokers two working days to submit business and five days for pipeline business, bucking the recent trend of snap product withdrawals.
Coventry made the announcement on 26 March that it would pull its products on 28 March, but would continue to accept pipeline business from brokers until close of business on 1 April.
The decision was in line with Coventry’s pledge to always give brokers at least two working days’ notice of product withdrawals.
Julie Jones, head of intermediary sales at Coventry, said: “We understand entirely that brokers need a reasonable and sensible timescale for withdrawal of products and that’s why we have shown an ongoing commitment to this by having this pledge. I think this clearly demonstrates the Coventry’s fairness and commitment to our intermediary supporters, while also keeping sight of the commercial realities that necessitate product rotations in the current climate.”
The notice period contrasts with other lenders who have been giving sometimes just hours notice before ranges disappear completely.
Roy New, a sole broker, said: “We’re treating customers fairly, so I wish lenders would treat brokers fairly. If they are looking at the market correctly, they should be able to say that they are pulling rates in a week’s time.”
Ashley Clark, director of Need An Adviser.com, said: “I can understand the pressures lenders are under, but should they really be going to market with a product that has to be pulled so quickly?”