Nobody wants to postpone taking out a mortgage. So can using an app-based lender make a difference to the speed and efficiency of your application? Richard Harrison puts the case forward…
Too often, the mortgage process is far too slow, leading to stress and uncertainty for borrowers who don’t know if they can get the financing they need.
Being left in the dark for days and weeks at a time will inevitably lead to sleepless nights worrying about whether someone else will steal your dream home.
Everyone at Atom bank is obsessed with improving the experience our customers have when taking out a mortgage.
We continually look for ways to streamline our processes so borrowers get the answers they need faster.
Our changes are delivering tangible improvements for customers, such as reducing the time from request to offer to an average of just three business days over the last three months, many of which are on the same day.
Compared to the industry average of eleven days, it is clear that we are setting the bar high for a faster and smoother journey for mortgage lenders.
As an industry, we must continue to find ways to shorten timelines for the benefit of our customers.
How technology can improve the borrower experience
A big factor in those speeds is the use of technology. The mortgage industry has been a little slower than other financial services sectors in recognizing ways in which technology can help customers, but as an app-based bank, Atom Bank has always been well aware of its potential.
By implementing technology intelligently, it can complement experienced people rather than completely replace them. It can take on some of the heavy lifting, allowing our people to focus their efforts on areas where their expertise is most needed.
That balance means customers enjoy a smooth process, but also know they can get support from the Atom banking team if needed.
We also seek to drive change in the sector as a whole, advocating the use of technology through our membership of the Open Property Data Association.
Promoting the sharing and use of trusted open real estate data puts buyers in a more informed position and drives a more efficient process that will ultimately benefit everyone.
First-time buyers – help on the property ladder
It’s no secret that life is tough for starters. Continued rising house prices have made purchasing a home more expensive, while saving a sufficient down payment is a challenge for many.
Atom Bank has consistently supported aspiring borrowers through a range of mortgage products available up to 95% loan-to-value (LTV), meaning buyers only need to save a 5% deposit.
Recent changes to our criteria also mean we can offer improved LTVs for certain property types in London and the South East, such as new-build houses and flats, providing a much-needed helping hand to those looking to buy in the most expensive areas. of Great Britain.
There are also loan-to-income ceilings to consider, which can limit the amount available to borrowers and thwart their plans. Again, this is something we have addressed, increasing the LTI limits to six times income for eligible applicants.
By taking into account buyers who may only have a modest investment, and offering more to those who can afford it, we are looking at ways to ensure that first-time buyers can still get into the housing market, especially those who are not in able to attract its financial resources. support from family.
After all, they are the lifeblood of the market.
Missing payments
The past few years have been exceptionally difficult for many potential borrowers, who have seen their household budgets soar and in some cases miss the occasional payment.
These payment problems, even if only temporary, can have a long-lasting impact on a borrower’s prospects. Too many lenders rely too heavily on credit scores when evaluating an applicant, giving them an unnecessarily vague picture of people with historical payment problems.
Atom Bank has taken a different approach, looking beyond these scores to get a better impression of the individual borrower and ensure that they have access not only to well-priced products, but also to the processes through which Atom Bank can deliver market-leading response times.
Plus, there is support to help these borrowers get back on track so that when the time comes to refinance, they get our best rates as their circumstances have improved.
We want to build relationships with our customers and support them not only with their current needs, but also with their future needs.
What borrowers really want
To be a good mortgage lender, you must be a good listener. You need to include input from borrowers and mortgage brokers so you can better understand what is really needed and how to meet that need.
Mortgage lenders of all types still need help from nimble lenders, and Atom Bank plans to play an increasingly important role in providing that support.
Richard Harrison is head of mortgages at Atom Bank