The first Intermediary Mortgage Survey from Iress has identified the lack of fully paperless systems including ‘scan and attach’ as important to distributors.
The survey, which analysed the responses of lenders comprising 64% of the intermediary mortgage market as well as 120 intermediaries, found just 43% of lenders offer this technology.
Given that the Mortgage Market Review brought 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, found Iress.
The survey revealed just 43% support the online mortgage offers and even fewer at 38% provided online reasons for case referral.
Brokers said transparency and progress updates during the application process are also important, with 53% suggesting lender provision of a single online status view of cases is a key requirement.
Just over half of the 21 lenders offer a single online case status view, but 67% of lenders support real time case tracking. Where 34% of intermediaries are keen to see a daily email digest of case statuses, just one in ten lenders can provide an automated update via email or SMS.
Brokers are also keen to see lenders allow online application and product fee payments, which a quarter of lenders still don’t offer.
Henry Woodcock, principal mortgage consultant, IRESS, said: “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.”
Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), said: “The significant changes over the last 12-18 months mean lenders have been making considerable investments into their mortgage processes and not least into IT, reflecting the pressures being brought about by the Mortgage Market Review (MMR) and the Mortgage Credit Directive.
“We welcome the acknowledgement that ‘significant strides’ have been taken to make systems more intuitive and efficient – but there is clearly more that can and will be done. IRESS’ research clearly signposts the improvements that are most valued by brokers, and will help to focus minds on the areas that can make the biggest difference to the broker and consumer experience.”
