IRESS’s first ever Intermediary Mortgage Survey, has identified the lack of fully paperless systems as a key issue for intermediaries.
90% of those surveyed view the ability to scan and attach application proof documents as the most important requirement in the application process. However, just 43% of lenders currently offer this. IRESS said that given that the MMR has led to a 39% increase in the amount of documentary evidence lenders require to support applications, an increasingly paperless process is crucial to the speed and efficiency of the application process.
Furthermore, just 43% support the online production of mortgage offers, and even fewer (38%) provide online reasons for case referral.
Transparency and progress updates within the application process were also central concerns for intermediaries. 53% saw lender provision of a single online status view of all their cases as a key requirement, which was broadly matched by the number of lenders who support this (52%). 67% of lenders support real time case tracking, however, the provision of regular proactive updates is currently underserved. While 34% of intermediaries prioritised a daily email digest of case statuses, just 10% of lenders are currently able to provide an automated update via email or SMS.
In addition, just a third of lenders currently provide milestone updates via email, and 43% provide automated requests for information or documentation.
Another area identified as requiring improvement is the payment of application and product fees – a quarter (24%) of lenders still do not support online payments by card
Henry Woodcock, principal mortgage consultant, IRESS, said: “Intermediaries are the lynch-pin for a growing mortgage market, especially given the regulatory change we have seen in the last year. Product innovation is now starting to increase once more following the MMR, and lenders are providing intermediaries with new and improved choices for their clients, whether through further mortgage advances, product switching, or new lending.
“Lenders clearly recognise the importance of the intermediary market, and have taken significant strides to improve their systems to make them more intuitive and efficient for intermediaries to use. However, there is more that can be done to make the application process as seamless, cost efficient and quick as possible. Further steps towards a fully paperless process, along with increased transparency will be crucial to enabling the intermediary channel to maximise business opportunities.”
