The industry could speed up turnaround times for customers if lenders were smarter about packaging requirements, said CLS Money managing director Clayton Shipton (pictured).
“Lenders are coming back with 20 to 25 points that require ‘clarification’, even where the customer has passed a decision in principle and provided proof of income and bank statements,” Shipton said.
“A different lender at the opposite end of the spectrum will only ask for a payslip. Which one do you think we want to do business with when speed is a critical factor?
“We’re calling for a better balance between following a sensible credit policy and the multiple ways in which lenders require supporting evidence to back up mortgage applications,” he said.
Open Banking is supporting innovations, Shipton added.
One forward-thinking lender is using the technology to trial a process that asks for no supporting evidence.
“Lenders that are able to satisfy their credit requirements and simplify requests for supporting documentation will benefit from intermediary support and will be the winners in the long run,” Shipton said.