All too often the mortgage process is far too slow, leading to stress and uncertainty for borrowers who don’t know whether they will be able to secure the funding they need.
Being left in limbo for days and weeks on end inevitably leads to sleepless nights worrying if someone else will swoop in and steal your dream home.
Everyone at Atom bank is obsessed with improving the experience our customers have when taking out a mortgage.
We are constantly looking at ways to streamline our processes, so that borrowers get the responses they need more quickly.
Our changes are leading to tangible improvements for customers, such as reducing the time from application to offer to just three working days on average over the last three months, with many going through the very same day.
Compared with the industry average of 11 days, it’s clear that we are setting the bar for delivering a faster, smoother journey for mortgage borrowers.
As an industry, we need to keep finding ways to cut down timescales to the benefit of our customers.
How technology can improve borrowers’ experience
A huge factor in those speeds is use of technology. The mortgage industry has been a little slower than other areas of financial services to recognise ways that technology can deliver for customers, but as an app-based bank Atom bank has always been well aware of its potential.
Smartly implementing technology means it can supplement, rather than outright replace, experienced people. 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 slick process, but also know that they have support on hand from the Atom bank team whenever needed.
We are also trying to drive change in the industry at large, championing the use of technology through our membership of the Open Property Data Association.
Bringing about greater sharing and use of trusted open property data will put buyers in a more informed position, as well as driving a more efficient process, which ultimately everyone will benefit from.
First-time buyers – help onto the property ladder
It’s no secret that life is tough for first-time buyers. Persistently rising house prices have made purchasing a property more expensive, while just saving a sufficient deposit is testing 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 need to save a deposit of just 5%.
Recent changes to our criteria also mean that we can offer improved LTVs on certain types of property in London and the South East, like new-build houses and flats, providing a much needed helping hand to those who want to buy in the most costly areas of the UK.
There are also loan-to-income caps to consider, which can limit the amount available to borrowers and scupper their plans. Again, it’s something we have moved to address, increasing LTI caps to six times income for eligible applicants.
By considering buyers who may only have modest deposits, and offering more to those who can afford it, we are looking for ways to ensure first-time buyers can still get onto the housing ladder, particularly those who aren’t able to turn to financial support from family.
They are the lifeblood of the market, after all.
Missing payments
The last few years have been exceptionally difficult for many prospective borrowers, who have seen their household budgets stretched, and in some cases missed the odd payment.
These payment hiccups, even if they were only temporary, can have a long-lasting impact on a borrower’s prospects. Too many lenders are overly reliant on credit scores when assessing an applicant, resulting in them taking an unnecessarily dim view of those with historical payment problems.
Atom bank has taken a different approach, looking beyond those scores to get a better impression of the individual borrower and ensuring they enjoy access not only to well-priced products but also the processes that allow Atom bank to deliver market-leading response times.
What’s more, the support is in place to help these borrowers get back on track, so that when the time comes to remortgage, they will be offered our best rates should their circumstances have improved.
We want to build relationships with our customers, supporting them not just with their present needs but their future ones too.
What borrowers really want
To be a good mortgage lender, you need to be a good listener. You need to take on board the input of borrowers and mortgage brokers, so that you better understand what is really needed and how you can meet that need.
Mortgage borrowers of all kinds continue to need help from nimble lenders, and Atom bank intends to play an ever-increasing role in delivering that support.
Richard Harrison is head of mortgages at Atom bank
