Accord, the intermediary arm of Yorkshire Building Society, has e-mailed intermediaries stating that from 9 August, new applications would only be accepted through its online system. However, paper-based applications made before the end of August are being honoured.
Linda Will, managing director of Accord Mortgages, said it was a natural progression for the lender as most applications come via its online service.
She said: “The percentage of online applications has been going up and up. 95 to 97 per cent and upwards of our mortgage applications currently come in the form of online requests and we experience heavy intermediary website traffic.”
“The significance of e-commerce benefits is a main reason why the decision was taken. It only takes a third as long to process an application online when compared to a paper-based application,” she added.
The decision comes a week after Mortgage Introducer revealed that some brokers are concerned about lenders’ over-reliance on technology. Will believes that because the majority of Accord’s business is conducted online, this is not an issue.
She said: “In our broker focus groups, intermediaries have given a positive view of the change. We don’t deal with many brokers who prefer paper applications. There are plenty of smaller lenders who don’t currently utilise an online system and so there are still opportunities for those brokers to do business.”
Andy Frankish, managing director of Mortgage Talk, said Accord was making the right move. He commented: “Technology is quicker, more efficient and cost-effective.
“It’s a good thing. You have to accept and embrace the fact that technology is becoming prevalent in our industry rather than whine about not being able to do paper applications.”
