Mortgage brokers would rather have access to an underwriter than a sophisticated lender portal if it means getting the right outcome for their client, according to the latest Knowledge Bank Lenders Live.
Poor communication emerged as the biggest lender frustration during the session, despite continued investment across the mortgage market in technology and digital journeys.
A live audience poll found 40% regarded poor communication as their biggest frustration when dealing with lenders. Underwriting inconsistency and repeated data entry were each selected by 30%.
The 191st Lenders Live brought together Adam Smith, founder and principal broker at Alfa Mortgages, Andy Cooke of Virgin Money and Nationwide Building Society, and Damien Sabbaghe, intermediary business development manager at Vernon Building Society. The session was hosted by Knowledge Bank sales director Shane Chawatama (main picture, inset).
PEOPLE OVER PORTALS
The panel discussed how brokers can still be required to enter the same information at decision-in-principle, illustration and full-application stages, while piecemeal document requests and differences between individual underwriters can add further delays.
But the discussion suggested that better technology alone would not solve brokers’ frustrations.
Smith said: “I would rather have a poor piece of software but be able to ring the underwriter or BDM directly and discuss the case.
“I value the lenders that give us those relationships because I know we are more likely to get the right outcome for the client. I can deal with difficult technology as long as the outcome is good.”
The panel acknowledged the cost and complexity involved in replacing established lender systems but argued that the broker experience needed to be considered as a whole rather than judged solely by the quality of a lender’s portal.
Sabbaghe said: “The bigger issue isn’t necessarily the technology itself; it is consistency.
“That means consistency in processing, consistency in underwriting decisions and the ability to access the people making those decisions.”
SERVICE CAN DECIDE WHERE THE CASE GOES
The panel also highlighted the commercial consequences for lenders when service falls short.
Where more than one lender can accommodate a borrower, the ease of dealing with the lender, quality of communication and confidence in its underwriting process can influence where a broker ultimately places the case.
Chawatama said: “Technology should make it easier for lenders and brokers to work together, but it cannot remove the need for communication.
“When a system produces a decision without giving the broker a way to discuss the context behind the case, technology can create another barrier rather than removing one. The strongest lender propositions bring technology and human expertise together.”
LATER-LIFE LENDING MOVES MAINSTREAM
Later-life lending was another focus, with research discussed during the session suggesting customer perceptions have not kept pace with changes in the mortgage market.
Some 64% of brokers believe older borrowers assume lenders impose age restrictions, while 57% encounter customers who believe equity release is their only option.
More than half said clients were unaware that pensions and investments could potentially be considered when demonstrating affordability.
At the same time, 60% of brokers reported an increase in enquiries from customers aged over 55, with reasons for borrowing ranging from remortgaging and repaying an existing mortgage to home improvements, helping family members and reorganising finances following divorce.
Sabbaghe said: “Later-life borrowing is becoming a more normal part of the conversations lenders and advisers are having with customers.
“There are people still in employment who will transition into retirement during the mortgage term, as well as customers who are already retired. If sustainable income and an appropriate repayment strategy can be demonstrated, there may be more options available than customers realise.”
The panel argued that this created an important role for advisers, particularly where cases required an understanding of pension income, differences in applicants’ ages and how affordability could change when employment income ended.
INFORMATION IS CHEAP, TRUST IS NOT
Artificial intelligence also returned to the agenda, with research discussed during the session suggesting around six in 10 consumers now use AI to help make decisions.
Almost one in five were reported to have acted, or nearly acted, on AI-generated guidance that subsequently proved incorrect, while 62% said they did not have enough information to determine whether the guidance they received was accurate.
The panel saw opportunities for AI to improve areas including administration, document summaries and elements of underwriting, but warned against consumers treating its output as definitive financial guidance.
Sabbaghe said: “Information is being commoditised, but trust is becoming more valuable.”
He added that customers continued to approach brokers for validation, context and reassurance, areas where experienced professionals retained significant value.
The panel also highlighted the importance of the information underpinning AI systems, arguing that incomplete, outdated or inaccurate data would inevitably affect the quality of their output.
Chawatama concluded: “This session showed that the mortgage market does not face a choice between technology and people.
“Whether we are talking about lender portals, later-life affordability or AI-generated information, technology works best when it supports knowledgeable professionals. As customer circumstances become more complex, communication, trusted data and access to expertise become more important.”
