Accord has claimed to have reduced the time it takes a broker to receive an agreement in principle (AIP) to an average of under an hour, down by three hours since May.
Virtually all (94 per cent) AIPs are processed on the same day they are submitted, which is an increase of 53 per cent from March, claimed Yorkshire Building Society Group’s intermediary-only lender.
The improvements come as a result of simplifying the way it processes mortgage applications, by giving brokers quicker lending decisions.
Straight-through AIP acceptance rates have doubled since April, with the number of AIPs being referred for further assessment dropping by almost a quarter. Since changes were made to its affordability criteria in the spring, the average amount Accord lends has increased by 12 per cent.
It has also reduced application to offer times by five days from July 2015 compared to July 2016. The lender consistently offered mortgages to borrowers in less than 15 days of an application being received within the last six months, a figure which reached 12 days this July.
Earlier this month, brokers called for faster mortgage application to completion times, along with more transparency from lenders around which parts of the process are causing delays.
Managing director Charles Canning gave an example of a family with one child and a household income of £52,000 with monthly commitments, such as childcare, looking to borrow £225,000 over 25 years.
“We would offer them a loan of £232,869, which is more than some of our biggest competitors,” he explained.
“The changes have been carefully considered, and while Accord aims to take a more pragmatic view of borrower spending, as a responsible lender it will continue to ensure customers will comfortably afford their monthly repayments.
“We are constantly reviewing how we can improve our service to brokers. We hope our faster turnaround times and increased mortgage acceptance rates will assist intermediaries to meet their clients’ needs.”
Iain Easton, mortgage protection broker at Independent Mortgage Store, said the quicker turnaround times enable him to get back to clients straight away.
“This has strengthened my relationships with my clients as I am able to deliver on what I promised in a timely manner,” he commented.
“Accord’s service has come on leaps and bounds - having direct access to the underwriting team means you can keep track of a case every step of the way, and you have the reassurance that any issues will be dealt with quickly.”
peter.walker@ft.com
