Why specialist lending is a balancing act
By Gareth Lewis, Managing Director at MT Finance
As borrowers continue to turn to specialist lenders for their financial needs, being able to move at pace is more important than ever. However, we need to retain the ability to take a commonsense approach to applications. Gareth Lewis explains how we can achieve both.
We’re all acutely aware of the challenges landlords have faced in the last few years, particularly since the now-infamous mini-Budget. As both specialist lenders and brokers stepped in to fill the void left by high street lenders who had pulled products with little to no notice, one thing became increasingly obvious: many borrowers not only needed expert solutions, but they needed them delivered quickly and efficiently. Working with a lender who was flexible and willing to take a view of their circumstances were also major factors.
It was at this point that I think many of us really reassessed the processes we had in place and how they could be improved to deliver the best possible service for both brokers and borrowers. The obvious answer to this was automation.
There are multiple benefits to using a platform that can automate the mortgage application process. The most obvious is, of course, the time that can be saved. Brokers can key in the information and, if it fits within the lender’s criteria, a decision in principle can be run instantly. The case then progresses to a full mortgage application. With direct access to the platform, brokers also have greater visibility of how each case is progressing, along with what documentation they need to provide. The result is a fuss-free, streamlined system that has a direct – and positive – impact on how long an application can take to complete.
The benefits of both
However, simply having an automated system is not enough and there is a balancing act that needs to be trodden when it comes to both applications and the overall mortgage process. If lenders are using an automated platform, then there is often space to customise it. For example, if everything fits within a product’s tramlines, a case can progress seamlessly but if it doesn’t, lenders can manually assess it, allowing them to get comfortable with the application if possible.
I would argue that combining both approaches is absolutely vital. After all, borrowers come to specialist lenders because we offer something different to our high street counterparts and we need to ensure this is what they are receiving. I’m sure we’ve all seen applications which don’t seem to be viable but it’s only upon closer inspection that we can understand how they can work.
Combining automation with a manual approach not only means that borrowers are getting the best of both worlds, but it also ensures that lenders are not losing their ability to think outside of the box. This is something we are firmly committed to here at MT Finance.
Contact us
More information about MT Finance’s products – including buy-to-let mortgages and regulated and unregulated bridging loans – visit our website or email enquiries@mt-finance.com.
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