These include First Active, RBS, NatWest and The One account.
Initially, the fast-track procedure is being applied to any applications of up to 75% loan-to-value (LTV). Where previously all applications were assessed by an underwriter according to a set of lending criteria, to see whether a reduced documentation process could be followed, brokers will now be able to check and certify clients’ income levels themselves. Fast-track will be available for loans of up to £500,000, including for first-time buyers.
In addition, it is streamlining its ‘Know Your Customer’ (KYC) requirements, giving brokers the option to carry out their own verification and certification of clients’ proof of identity and proof of address documentation in line with the guidelines issued by the Joint Money Laundering Steering Group (JMLSG).
Both developments will speed up the application to offer process and reduce the amount of documentation clients and brokers need to supply. To help streamline the administration burden, brokers will now only need to send in one fully completed certificate confirming that they have seen the relevant documentation for both proof of income and for proof of a client’s identity and address.
Chris Pearson, director of intermediary mortgages, Royal Bank of Scotland, said: “We recognise that it’s not just great products that intermediaries are looking for. Speed and ease of the application process is also critical; especially in this day and age, where clients’ expectations of service are higher than ever. Being FSA-registered, brokers have the authority to certify proof of identity, address and income levels so we are happy to give them that option.
“Talking to our business partners, many of them expressed the desire for this to be included as part of their regulatory responsibilities if it meant that they could offer a better overall service to their clients. The introduction of these new processes is essentially a win:win situation for brokers, their clients and us the lender.”
A small proportion of fast-track and KYC cases will be sampled but this will not impact on the progress of applications.
