The Iress mortgage efficiency survey for 2022 revealed that out of a maximum score of five, challenger banks and specialist lenders gave themselves a four for the timeliness and effectiveness of their method of product launches. This was compared to a score of 3.6 last year.
Iress put this down to the fact that these types of lenders usually having better technology to deal with product updates compared to their traditional counterparts.
High street lenders and smaller regionals ranked themselves the least satisfactory, with both giving an average score of 2.8 for how they dealt with changes to their offering, down from three and 3.8 last year respectively. Larger societies scored themselves a 3.2, similar to the score of 3.1 in 2021.
Overall, all lenders gave themselves an average score of 3.1 for their handling of product updates.
Iress said: “The ability to move in an agile manner is obviously important in volatile funding and lending markets. For now, understandably, those with the vast majority of legacy tech are feeling the pinch of a lack of agility, hence the reduction in satisfaction levels year on year.”
App to offer times static
The mortgage application to offer timescale for all lenders rose from an average of 21 days last year to 23 days in 2022.
For high street lenders, this was 14 days for both last year and this year, 19 days for larger societies last year down to 13 days this year, 19 days for smaller regionals last year to 25 days this year and 32 days for challengers and specialists last year to 31 days this year.
Iress said: “Many lenders referred to the issues they experienced with poor conveyancing services this year. Whereas previously surveying had presented pandemic period challenges, the withdrawal of many solicitors into retirement or part-time work combined with the inability of the conveyancing factories to get and keep staff, had created some significant pinch points.
“Smaller regionals have perhaps struggled because they traditionally operate in markets that offer margin but are, by definition, not so straight-forward, often processing applications with legacy technology and processes and do not have the scale to leverage providers such as conveyancers.”
Shifting attitudes to technology
Iress also asked lenders about their satisfaction with their affordability, decision in principle, offer and completion processes and technology. The general sentiment was level with the previous two years.
The survey also revealed there was a shift in attitudes towards technology, with a rise in automation. However, technological gaps were still found in the conveyancing process.
Steve Carruthers, business development director at Iress, said: “This year, we spoke to 36 lenders and welcomed many new participants. Every experience is important to develop the picture of a year that saw continued lack of supply, increased demand and growing house prices.
“With the cost of living crisis casting a deep shadow over the UK, and the resultant interest rate fluctuations, lenders’ systems have been under immense pressure. It’s clear that the months ahead could be very challenging indeed, and lenders’ ability to ensure speed into and out of the market, while maintaining high levels of efficiency and client experience, will be paramount.”
