Technology firm Avelo has published research claiming that only one quarter (27%) of mortgages for banks and less than one fifth (15%) for mutuals, are currently sold through their branch networks.
Of the 70% of the mortgage market surveyed a clear difference emerged between how mutuals and banks originated their mortgage sales.
Mutuals were found to lean more heavily (75%) on the intermediary market, with almost twice as many sales being originated in this way compared to banks (35%).
On average across all lenders 15% of mortgages were sold via the telephony channel and 6% of mortgages were sold direct to consumers online.
Applications going to offer were highest in the consumer and intermediary channels at 76% and 75% respectively.
While offers to completion were also highest in the consumer and intermediary channels at 85% and 79% respectively.
On average one fifth (18%) of offers were produced within five days, with banks higher at nearly one third (30%) and mutuals lower at just over one in 10 (12%).
Looking at offers made within 14 days, the average was just over 73%, this time mutuals achieving a one percentage higher average rate than banks. Offers made within 30 days had an overall average of 89% across all lenders.
Henry Woodcock, principal mortgage consultant, Avelo said: “We were really encouraged by the response to the survey and the appetite from lenders to examine strengths, weaknesses and opportunities in current processes with a view to improving efficiency. Time to offer is seen by lenders, applicants and intermediaries as the key measure of efficiency and customer service.
“It will be extremely interesting to see what changes are put in place over the next 12 months and the impact these have on mortgage efficiency.”
