Despite mortgage lending being up this year, lenders are taking longer to come up with offers – and in many cases, not coming up with offers at all – delaying house sales.
According to financial services technology firm Avelo, 22% of lenders are now taking more than a month to produce an offer – much longer than a year ago – and 43% of all applications do not proceed to an offer at all.
A year ago, 11% of lenders were taking more than 30 days to produce an offer. Last year, 18% of lenders were producing an offer in under five days: today, the figure is 13%.
The most successful channel for mortgages is brokers, who have a 62% success rate of getting applications to offer. However, while most lending (53%) is done through intermediaries, they have lost around 14% market share over the last year, as large lenders conduct almost half their lending through branches.
Avelo warns that the mortgage process will slow further once new rules come in with the Mortgage Market Review next April, which will implement more detailed checks of borrowers.
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