Turnaround time improvement?

Advisers have begun to note a slight improvement in bank turnaround times, according to economist Tony Alexander's latest survey of the market.

Wednesday, January 27th 2021, 8:16AM

Alexander's monthly survey of the adviser market reveals "banks have improved their turnaround times in most instances, but not all".

One Auckland-based respondent to the survey said: "Bank turnaround times have been good after the break; deals are now getting picked up and approved within a few days and [that] seems to be across all banks."

Another Aucklander added: "Bank turnaround times have improved since the New Year with the exception of one bank, and this is providing better service levels to our clients."

However, not everyone was in agreement. Three respondents to the survey described turnaround times as "appalling".

One of them said: "The turnaround times once again from all banks are diabolical. The way in which a number of lenders speak to advisers is quite appalling. Evident the banks are not broker friendly at all, though they say they are."

Alexander's survey also reviews the level of appetite in the market from investors and first home buyers.

A net 24% of mortgage advisers reported more investors looking for advice, up from a net 11% in December and 20% in November, but down from 34% in October.

After taking a break in December, first home buyers are said to have roared back into the market in January.

A net 33% of mortgage advisers reported more first home buyers looking for advice, up from 13% last month.

The economist's report has some positive news on the lending market.

A net 27% of advisers reported lenders are more willing to extend home loans to clients this month, the highest figure on record in the survey.

Alexander predicts lenders will become more receptive this year amid stronger economic indicators.

He said the 27% figure "supports a view that the passage of time and appearance of better-than-expected economic data and housing market performance, is bringing lenders out of their shells".

Tags: first home buyers Lending property investment Tony Alexander