Landmark Information blog: Finding common ground – Lender viewpoint
The Landmark Information Group has written a blog on the subject of finding common ground, with the first being the viewpoint of a mortgage lender finding common ground with an estate agent and a conveyancer.
“I think we can sometimes speak a different language at points. Getting together and understanding each other’s different worlds a little bit better could only smooth that out.”
Derek Burt, Head of Mortgage Operations,
Lloyds Banking Group
Click here to watch the video.
Although lenders, estate agents, and conveyancers have vastly different roles, they all operate within the same property ecosystem and face very similar challenges. Our cross-market research revealed that the leading concern for all three groups were the current economic climate, interest rates, and the cost of living.
Beyond the challenging economic environment, lenders face further difficulties as evolving legislation and technology continue to present both challenges and opportunities. Landmark’s survey found that nearly three-quarters (73%) of lenders reported that recent legislative changes have impacted their role, and 80% expressed concern about cybersecurity.
These issues contribute to sector-wide tension, with heightened concerns across the transaction lifecycle among all stakeholders on various fronts.
Landmark believes that progress can be made through better collaboration. To foster mutual understanding, we brought three seasoned property professionals together for an on-camera discussion about their challenges and future priorities. Could they find any common ground? How do we work together to speed up transactions and bring more certainty to the process?
In this blog, we uncover some highlights within the video from the perspective of the lending community.
The power of data:
In our video, the participants explored how poor communication amongst stakeholders can lead to significant stress. Duplication of work was identified as a major issue within the conversation, with the consensus being that existing data could simplify standard processes. The lender agreed, highlighting the sheer amount of data available now and the potential benefits to leveraging this resource properly.
Improving communication channels was also deemed crucial for saving time and speeding up transactions. Recent consumer research from Landmark supported this theme, with better communication between the estate agent, lender and conveyancer coming out on top when consumers were asked about the factors that would have improved the buying or selling experience the most.
Modernising processes:
Stakeholders in the video expressed that many processes are outdated and in need of modernisation. The abundance of available data to streamline these processes was a recurring theme. Landmark’s recent research supports this, with estate agents, conveyancers, and lenders all placing ‘digitising processes’ within their top two answers as a solution to improve efficiency and reduce costs.
When it came to improving productivity, ‘digitising workflows’ emerged as a popular solution, especially among lenders, who ranked it as the most important factor. Elsewhere, it seems lenders are ahead of the curve with technology with a recent survey finding that, for the sixth consecutive year, mortgage brokers are most satisfied with the technology offerings at major banks, with 79% of respondents approving.
Service is key:
For lenders, productivity is often a key measure. When asked what would most impact this, lenders cited ‘digitising workflows’ as the top answer, followed by ‘less chasing for updates’ and ‘faster transactions.’ These themes were reinforced during the discussion, with a focus on maintaining consistent service levels despite market fluctuations.
Mike Holden commented on the market’s broader influences:
“Over the past 18 months or so, the mortgage market has been uncharacteristically fragile after more than 10 years of stable low interest rates.
“The market has become more susceptible to external factors, making it a challenging environment for lenders.
“Whilst the supply of residential property has remained relatively healthy, tracking above with pre-pandemic levels, other transaction milestones such as completions are down by circa 30-40% compared to 2019.”
Chasing to meet expectations:
The debate underscored the necessity for high service levels and quicker transactions to address current market conditions. This matches consumer expectations, as Landmark’s recent market research shows that the ideal timeframe from offer acceptance to completion is just eight weeks.
With the average transaction time currenting sitting at 19 weeks, according to a recent Landmark report, it’s evident why the group was keen to prioritise enhanced service and speedier transactions.
One significant factor contributing to delays is the need for stakeholders to chase updates. Recognising this issue, HM Land Registry announced in January 2024 that it is collaborating with mortgage lenders to eliminate the need for them to chase conveyancers for application updates.
In a new pilot program, HM Land Registry will provide 10 of the top mortgage lenders with direct data on their application progress. This service aims to be “more efficient, save time, and drive valuable savings for lenders and conveyancers”.
Justin Parkinson, managing director of Decision First, which operates Lender Exchange, said:
“This is a very welcome initiative; we look forward to working with HM Land Registry in the coming months.
“Getting direct updates on the status of our mortgages will significantly streamline our work and that of the conveyancers we work with.”
So, which other areas could be improved to shorten transaction times? Could our lender, estate agent and conveyancer find further areas of consensus?
Watch the Common Ground video to find out.
Kindly shared by The Landmark Information Group
