Electronic offer packs ‘the next big thing’

Barney Drake, operations director for Yes Mortgage Loans, said that with the first change to the Consumer Credit Act since 1974 due in April 2007 lenders would have the necessary collective strength to push the idea forward.

He said: “In an age of ever increasing technological capability, we still can’t send an offer pack to a client electronically. The encryption technology is standing by to allow it to happen, so why aren’t lenders agreeing on a platform for it? The Financial Services Authority (FSA) requires you to have an audit trail, but that’s missing when the pack is sent by post, unless it’s a recorded delivery. If it is sent by e-mail, then there is. It would be far more reliable and gives the benefit of time.”

However, David Finlay, intermediary business director at Woolwich, felt lenders were concentrating on putting front end services in place. “It depends on lenders’ current priorities, but I think it will be the next thing lenders will look at. I imagine lenders would look to use an existing platform, rather than create one.”

Brian Hall, managing director of The Mortgage Portal, said the Origo initiative to create industry-wide e-commerce standards was an important aspect in the discussion.

“The process of issuing an offer in electronic format is simple and could happen today. What’s important is making it part of a fully integrated process. That would require everyone reaching a consensus. But the signs are encouraging as so many lenders are sponsoring Origo.”