The Association wants to gather new information to identify and address the specific issues which have affected service levels in the industry since the Covid outbreak and are causing bottlenecks and delays to applications.

Once it has drawn on members’ insights IMLA wants to work with industry stakeholders – including intermediaries via the Association for Mortgage Intermediaries (AMI) – to find solutions to the challenges and also manage the expectations of borrowers and others in the process.

IMLA recognised the ‘unprecedented’ level of demand experienced since the property market reopened following lockdown offered positive affirmation the market remained resilient.

However, it was also concerned about the challenges being presented as a result of this burst of activity.

Impact on individual businesses

Across the board, lenders are attempting to act as responsibly as possible in uncertain economic times meaning a more meticulous approach to underwriting is required, lengthening the time taken to process applications.

However, IMLA also points out, each lender has been impacted in different ways by the Covid-19 crisis and the survey –being undertaken over the coming weeks – will help the Association understand exactly how each firm has been affected and the main influences this is having on their service levels.

The Association will then combine these perspectives to identify possible solutions by working together with others, including AMI.

Kate Davies, executive director of IMLA, said: “The focus of lenders remains, as it should, on acting prudently and lending responsibly within their regulatory commitments and – ultimately – to protect borrowers. However, the current situation is clearly continuing to impact service levels and we need to identify the main reasons for this, and try to find ways of alleviating the logjams.

“We also need to be clear about what is realistically achievable and try to manage borrowers’ and intermediaries’ expectations in terms of what lenders can deliver.

“The Covid-19 crisis has emphasised the need for borrowers to be given good advice about their mortgage options, and I believe that most borrowers will understand and appreciate that good advice and responsible lending may take a little longer in these exceptional times.”

Praise for intermediaries

Davies paid to tribute to the valuers to whom, she said, the mortgage industry ‘owed a lot’ because they were so quick off the mark when the market reopened in May.

And she praised intermediaries for their response to the enormous demand from borrowers.

“There will inevitably be further bumps along the way during the next few months,” Davies added. “But I’m confident that we can work together to improve service levels and support our intermediary partners whilst maintaining responsible and prudent lending.”

Meanwhile, Robert Sinclair, chief executive of AMI, said: “Whether we are advisers or lenders, we are all in this market together and it is vital that we work in partnership to find ways of overcoming these difficulties.

“This is a welcome step from IMLA towards highlighting and resolving factors that are impacting service levels for customers and we are eager to work jointly with its members as they evaluate their findings and identify solutions to the current challenges we are all facing.”