Vizolution has published the first in a series of white papers looking at the potential impact of the Mortgage Market Review (MMR).
With just over six months to go until the implementation of the MMR, Vizolution has conducted extensive research into the MMR and the effect that it will have on the sales process in particular and the mortgage market as a whole.
The series of white papers, which will be launched over the next few weeks, will look at every issue raised by the MMR and propose a number of technological solutions to mitigate any negative impact.
The first Vizolution white paper looks at the impact of the MMR on the sales process and can be downloaded from www.vizolution.co.uk. One consequence of the MMR is that the length of sales process will increase dramatically which could have a significant effect of the number of people who fail to get to the end of the mortgage process.
Vizolution estimates that currently just 20% of mortgage sales are fully advised but that this will move to more than 90% under the MMR. A current unadvised sale typically takes about 15 to 20 minutes from start to finish; the advised process under the MMR is likely to take between 90 minutes and two hours. For the average customer it is estimated that the time taken for the advice process will increase by over 400% after April 2013.
Lenders and intermediary firms now have just a few months left to design, implement and test solutions that address these two key problems: a two-hour advised process and fewer customers making it to the end of the process. Vizolution’s white paper looks at these issues and how lenders can remove breaks from the sales process, increase customer understanding and help customers to actually engage with the advice.
Bill Safran, CEO of Vizolution, said: “The effect of the MMR cannot be underestimated. The effect on the sales process, the time it will take and the number of trained advisers that will be required will be dramatic and the FCA has made it clear that there will be no leeway and no extension of time for organisations that are not ready.
“The only way for an adviser to navigate the new, complex and lengthy advice process with the customer is through the use of tools that keep the customer engaged. Vizolution’s white paper is designed to draw attention to these issues, help make them clearer and provide lenders and advisers with the tools that they need to still be effective under the new regime.”