Lenders such as Santander are believed to be poised to launch direct to consumer technology allowing them to transact with borrowers online and via their mobiles.
The balance of mortgage business arranged by brokers could shift back towards lenders dealing with borrowers directly within two years, it’s been predicted.
Lenders such as Santander are believed to be poised to launch direct to consumer technology allowing them to transact with borrowers online and via their mobiles.
Graham Sellar, head of business development at Santander mortgages, said that currently Santander does approximately 50% of its product transfers online with customers directly.
But he suggested this could start to shift as a result of technology.
“This shows that with the right technology customers are keen to transact themselves online and we are sure this area will continue to evolve for new mortgage transactions,” he said.
Brad Fordham, managing director of Santander for Intermediaries, confirmedthat Santander is reviewing its technology and“is planning to launch an end-to-end digital solution at some point soon”.
He said: “The worlds of technology and banking are moving at pace and we’re seeing increasing customer appetite for online solutions. Today, around 3% of the market does their mortgage digitally so there is scope for growth.
“That said, our experience has been that borrowers are comfortable getting an agreement in principle or transacting a product transfer online.
“However, when it comes to a full application on a property purchase, it is the biggest financial decision a person makes and the fact remains that the majority still want the reassurance that an adviser can offer.
“There is definitely a balance to be struck between giving customers that choice.”
Robert Sinclair, chief executive of the Association of Mortgage Intermediaries, believes the customer has to be the driving force behind a move to arrange mortgages online.
He said: “It is important to recognise that there are only three key components in most property transactions.
“There is the house itself, a customer and a lender. All else falls off the back of these core participants. The customer must be the fulcrum for change.”
But Sinclair warned that in a world where 70% of mortgage transactions are initiated via intermediaries, the lack of any commonly agreed approach to data across lenders and their broker partners remained “a barrier to innovation”.
He added: “All consumer research to date appears to want automation of the data capture and processing, but at some point in the product selection, virtually all consumers want another human to interact and provide confirmation that the solution being proffered is the right one.
“The lender decision to lend will still have to be carefully assessed and the consumer remains tied for now to advice from a human.”
