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Seven in 10 lenders now offer online mortgage ‘decisions in principle’

Christina Hoghton
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Christina Hoghton

Sharing of data across the homebuying journey will improve customers’ digital experience and make the mortgage process more efficient

Most lenders now have the digital basics covered for borrowers, with 68% offering an online Decision on Principle (DIP), said Altus Digital.

A DIP gives you a rough idea of the maximum the lender will be able to offer you, based on the information you give them. It’s not a binding offer and you don’t need to proceed with that lender. But an online DIP gives you a ballpark borrowing figure, and it’s useful to show to estate agents to prove you are a serious buyer.

The software business has published its UK high street lender Digital MortgageBar, illustrating the digital capacity of some of the largest mortgage lenders.

It also found that only 29% of lenders publish financial and property lending criteria online, but over half provide online product pathways rather than simply listing products rates and fees on their websites.

Most lenders provide an online ‘knowledge repository’ of Q&As, guides and jargon busters, while a few offer online case tracking so applicants can follow their case’s journey as it moves to offer.

Altus digital consultant Chris Moore, said: “Competition and innovation within the mortgage sector is intensifying. High street lenders continue to invest heavily in mortgage sales and origination technology. This investment is not only driving operational efficiency & cost savings but is also empowering customers to make their own informed decisions.

“Open Finance and customer portals enable a more streamlined originations process for high street lenders. Mobile apps, which help homebuyers save for and buy their first home, are improving customer retention.

“Our analysis shows some great advances in digital innovation, but we expect a further, dramatic evolution, fuelled by improved access to and sharing of property and customer data.”