"While many lenders’ portals received praise for their ease of use, a number were criticised, highlighting the inconsistency in the level of services provided across the industry."
Among the improvements to services, the facility to scan and attach proof documents, voted the most important mortgage portal feature by intermediaries, is now offered by nine out of ten (89%) participating lenders.
The second most important feature, as voted by intermediaries, is an online single status view of all cases. This is now offered by over half (59%) of lenders who participated in the research. Information on the status of mortgage applications has improved, with 85% of lenders now providing real-time case tracking, up from 75% in 2016. Additionally, 70% of the lenders provide an online dashboard summary of outstanding application stages and requirements; a huge increase on last year’s 38%.
However, despite these considerable improvements, ease of use and the length of time it takes to process an application remain concerns for intermediaries. Two fifths of intermediaries (42%) ranked the usability of lenders’ intermediary portals as average to very poor, albeit down from 53% giving this rating in 2016.
Furthermore, eight out of ten (82%) participating intermediaries suggested improvements and changes that lenders could make to their portal.
Intermediaries are also still relying on the telephone rather than online systems, SMS or email, with 83% saying they call lenders between three and six times per application.
In the 2017 survey IRESS asked, for the first time, for lenders and intermediaries to provide comment on the development of ‘robo advice’. The subject polarised opinion between the two responding groups. Three fifths of lenders (60%) see ‘robo-advice’ as an opportunity, the rest (40%) appeared neutral.
This contrasted with the intermediary view. A minority (16%) see ‘robo-advice’ as an opportunity, 31% see it as a threat, but the majority (53%) were neutral. The view from those intermediaries who believe it is an opportunity, or at least not a negative development, can be surmised by one respondent's final statement: “Although 'robots' are adequate for straight forward applications, for anything more complex there will also be a human touch required.”
The IRESS Intermediary Mortgage Survey analysed the systems and processes of 27 lenders, representing an 86% share of gross mortgage lending. The report also canvassed the opinions of 592 intermediaries who deal with those lenders.
Henry Woodcock, principal mortgage consultant, IRESS, commented: “It is heartening that for the third year in a row we have seen improvements in the functionality lenders offer to mortgage intermediaries.
“Lenders are clearly listening to intermediary demands. 89% of participating lenders now provide the important scan and attach functionality, allowing documentary proofs to be added quickly to the mortgage application at the point of sale. This is up from 75% last year and just 43% two years ago. Similarly, 59% of lenders now offer an online single status view of all cases, up from 44% in 2016.
“However, while many lenders’ portals received praise for their ease of use, a number were criticised, highlighting the inconsistency in the level of services provided across the industry. Many intermediaries are asking for clearer, easier and faster application processes and complain some of the data requested by lenders is unnecessary, complicated and irrelevant. We expect to see further investment from lenders in response to intermediary requirements over the coming months.”
