Specialist lender Birmingham Midshires Solutions (BMS) is to launch an electronic online application form in a bid to secure its place among internet lenders.
Speaking at the latest Mortgage Solutions ‘Power Hour,’ Michael Bolton, director of mortgages at BMS, said the lender would launch online applications before Christmas.
Bolton said: ‘The combination of an electronic online application and credit score will give competitive advantage to the lenders who get it first. The amount of mouths to feed in this market will diminish significantly on the back of credit scoring and the electronic route. Our view is that whoever gets there sooner will grab a competitive advantage in this market.’
He confirmed an online credit-scoring system would be added to application forms next year.
The announcement was made during a debate over how lenders in the increasingly crowded sub-prime market could gain a competitive advantage, in which nearly all present agreed credit scoring and technology will take on a much greater role in the market.
Brian Pitt, sales and marketing director at Future Mortgages, which conducts around 38% of its business-to-business applications online, said: ‘I think in the longer term credit scoring will play an important part in this market and I think all of our current claims of underwriting to individuals will tone down over the coming years.’