You are here: Home - News -

Mortgage offers issued in five days double as lenders focus on speed – IRESS

by:
  • 11/10/2018
  • 0
Mortgage offers issued in five days double as lenders focus on speed – IRESS
More mortgage cases are being completed faster as lenders put an increased focus on using technology to improve the process, research from Iress has found.

 

The technology provider revealed that the proportion of mortgage offers being issued in five days or less had doubled from 5.3% to 11.2% in the last year.

While the percentage of cases offered in ten days or less remained largely unchanged at 30%, half of offers were made in 14 days or less and 83.5% in 30 days or less – both improvements on 2017.

Iress principal mortgage consultant Henry Woodcock (pictured) noted that this is down to the adoption of automated valuation models (AVMs) and access to customer bank records.

“We’ve seen across all types of lenders there’s been an improvement in that space,” he told Mortgage Solutions.

“The doubling of offers within five days is from a shift back on to lenders using AVMs where they can. They were only doing so on their back books but now they are also using them on the front end.

“And if they can get borrower income and expenditure electronically then some lenders can get offers within minutes and I think that will increase as more lenders use those services,” he added.

 

Lender confidence growing

Woodcock also noted that lenders were becoming more confident in using new technology with the regulated environment of the mortgage market and this was having an impact too.

“A couple of years ago lenders were so worried about getting things wrong they were almost triple checking everything, rather than just following sensible processes,” he continued.

“Now there’s a reliance and trust in some of the technology that wasn’t there before.

“Not every case will be able to be done in five minutes or five days, but there’s no reason why a lot of cases can’t go really quickly through the system, especially as the regulator is allowing firms to try out things which are streamlining the rules,” he added.

 

APIs still some way off

The Iress Mortgage Efficiency Survey found that application programming interfaces (APIs) are also likely to play a significant part in the development of mortgage technology.

However, while the benefits of APIs have been claimed for the last year, development has been slow in the mainstream market and Woodcock agreed it might take time until the results show through.

“It’s going to be another six, 12 or 18 months before we see that coming through, but every lender we talk to wants to know are the APIs open to enable them to talk to lots of different providers?” he said.

The survey found (55%) of lenders are looking at APIs to cut time and costs and half (50%) expect the technology to provide the most transformative efficiency gains over the next three to five years.

This coincided with 62% of lenders investing in mortgage hub technology to help connect up the overall mortgage and house buying journey.

 

Voice activated services

Open Banking has seen slower take-up, largely reserved for those in the initial phase, and lenders believe there may not be much to gain past assessing income and expenditure, Woodcock noted.

However, this could be a bigger gain for customers who use Open Banking enabled services, he added.

In more unusual avenues, 46% of lenders admitted they were actively reviewing or planning to implement voice activated services.

However mobile technology as a whole is far more ubiquitous with 86% of lenders already implemented or considering offering mobile services to mortgage applicants, while 52% were reviewing, likely to implement, or implementing instant messaging for both consumers and intermediaries.

 

There are 1 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Richard Beardshaw, head of sales, mortgage intermediaries at HSBC UK for Intermediaries welcoming the brokers to to… https://t.co/897XNMpbFi
  • We are in Allianz Park today for the first in the series of HSBC UK for Intermediaries Breakfast Seminars https://t.co/7rZZDSqmSM
  • At this year’s Later Life Lending Event Richard Rowntree from Bank of Ireland for Intermediaries will be presenting… https://t.co/izCPwrsOYw
Read previous post:
Nationwide boss warns a generation has lost out to owners, landlords and builders

Housing reform is needed to tackle the growing inequality in the market, with young people losing out while homeowners, landlords...

Close