The proposals are designed to improve efficiency and service levels for users of the Scottish Life Mortgage service. The proposals also anticipate a major shake-up in the market for mortgage advice as mortgage sales become directly regulated by FSA in October 2004.
Under the proposals Scottish Life Mortgages will move from Leeds to Royal London’s operating centre in Wilmslow, Cheshire. The move will enable Scottish Life Mortgages to benefit from the infrastructure support of a mature administration business including a strong team of experienced compliance and mortgage administration staff. This will enable front-line mortgage staff to concentrate on providing an efficient service to supporting mortgage advisers.
Steven Scholes, Director of SLM said of today’s announcement;
"These proposed changes come hard on the heels of the introduction of SLM’s "direct download" facility for mortgage applications. As the only non-lender offering direct download of applications, SLM has already indicated its commitment to realising operating efficiencies that will benefit mortgage advisers. The proposals we have announced today will help us improve efficiency still further."
Commenting on developments in the mortgage market Chris Ide, Chief Executive of Royal London’s retail operations said:
"The regulatory shake-up in the mortgage market presents every participant, from lenders to mortgage advisers, with a significant challenge. The challenge is to develop robust processes that meet the demands of the FSA regime. Even now it is clear that there will be winners and losers.
For those companies that rise to the challenge of regulation there will be a real opportunity to achieve high volumes of new mortgage business. The changes we are making to Scottish Life Mortgages will enable us to anticipate changes in regulation and to improve the service we offer to mortgage advisers."
The proposed changes are subject to staff consultation. For those staff affected by the proposed changes Royal London is committed to exploring opportunities either within the Wilmslow operation or elsewhere in the Royal London Group.
