A&L reports that it already has 90 per cent of brokers processing applications online and it is intermediary demand that has persuaded the 100 per cent switch.
The lender said it is due to inform the market on 31 August about the change, giving itself time for a pro-active campaign to inform and educate the 10 per cent not already using the online resources.
Applications submitted online lead to a lending decision within 30 seconds compared to the paper application which takes 2 to 3 days to process. Brokers are also offered a higher commission online at 0.35 per cent of the loan compared to 0.25 per cent with a paper application.
Mehrdad Yousefi, head of intermediary mortgages at A&L, said: “We have had positive feedback from brokers about our online system so it was a natural step and an easy call to go 100 per cent. It is quick, efficient and easy to use, with a ‘call me back’ button so brokers can get a rapid response from our internet support team.”
The system has three categories that cannot be processed online. These include cases where the customer has more than one property; has two incomes; or has lived in more than four properties in the last three years. These areas will still be processed by paper and are expected to be online in the next year.
David Bitner, head of product operations at Bradford & Bingley, said: “It may be a barrier for some brokers. If some brokers are not comfortable using the system in front of customers there is no doubt that this could be damaging to their business.”
And Andy Frankish, operations director for Mortgage Talk, said: “It is a bold move but online applications are the way forward. I’m not sure if they can claim the 100 per cent tag as there are still processes that can’t be performed, but I hope this encourages other lenders to move in the right direction.”
