Only one in five mortgages are currently being sold though a branch network, claims Avelo
The technology solutions provider’s mortgage efficiency survey of 19 lenders, representing 70 per cent of the UK lending market, makes the claim that 27 per cent of mortgages issued by banks are done through branch networks. This figure drops to 15 per cent for mutuals.
Mutuals reportedly sell almost as many mortgages over the phone as they do in branch; 10 per cent against 15 per cent. The discrepancy is slightly higher for banks as only 15 per cent of mortgages are sold over the phone.
Avelo principle mortgage consultant Henry Woodcock says: “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.”
“It is expected that greater changes lie ahead with MMR final rules meaning that non-advised sales are ruled out and all telephony sales will need to be advised which for many lenders will mean training more staff and re-developing systems. This presents a real opportunity for intermediaries as many lenders with mainly non-advised sales propositions will need to re-consider their distribution strategy.”
Offers to completion were highest in both consumer and intermediary channels, coming in at 85 per cent and 79 per cent respectively.
Avelo cannot confirm the participants in the survey.
Countrywide financial services director Nigel Stockton says: “The vast majority of mortgage business in banks and mutuals is still done face-to-face.
“This year, there will be more direct lending than intermediary lending. Last year, I estimate around £72bn was done through intermediaries and £65bn was done in branch. This year, the branch will be a little bit stronger as HSBC has done a little bit more, which is a direct-only lender. You would expect branch lending to be slightly up and intermediary slightly down.
“I would expect branch lending to be slightly in the majority this year.”