UK lenders are increasingly reliant on broker channels for distribution of their mortgage products, a study has found.
The Iress Mortgage Efficiency Survey unveiled that the number of mortgage applications through brokers was up from 77.5% to 90% over the last year.
The survey, in its 10th year, also found that lenders have substantially improved their processes, focusing on system modernisation, process efficiency and digitisation, driven by restrictions in place throughout the pandemic.
There was significant variation in application to offer timescales noted, with averages ranging from 14 days to 32 days across the lenders surveyed, while Open Banking dropped down the priority list for many lenders.
Retention rates were found to be higher among high street lenders and building societies sector than for challenger banks and specialist lenders.
Iress’ head of business development, Steve Carruthers, said: “Since the last survey, conducted just a few weeks into the first national lockdown, few of us would have imagined the industry would go on to experience record lending volumes in 2021. A continued low interest rate environment, changing preferences amongst UK house buyers, the extended stamp duty holiday and the government’s 95% LTV guarantee scheme did much to restore confidence in mortgage lending and borrowing.
“It brought much change and new challenges for lenders – but the need to process business efficiently has not changed; whether because of the volatile volumes, the evolving requirements of borrowers, the risk appetites of lenders, or how applications need to be processed. Our report shows true evolution across all parts of the industry at a time when efficiency and agility is more critical than ever.”
