It’s widely accepted that getting a mortgage is a stressful experience. The stress levels incurred as a result of the mortgage process were memorably highlighted by recent research by the fintech firm Ohpen, which found that almost half of applicants associated the process of obtaining a mortgage with anxiety.
The report included some colourful examples which outline just how tortuous the mortgage experience is for borrowers. One in 10 (13%) said they’d rather be trapped in a lift for 12 hours than have to go through the application again, which jumped to 23% of those buyers aged under 25.
Meanwhile, around a sixth said they would prefer to listen to four hours of roadworks instead of going through the application again.
These are amusing comparisons, but the reality is that the stress involved with obtaining a mortgage can have much darker impacts on borrowers.
For example, the Ohpen report found that a quarter of applicants aged 24-35 indulged in comfort eating due to the stress, while nearly one in four younger borrowers ended up taking time off work as a result.
WHY ARE MORTGAGES STRESSFUL?
There are plenty of different factors involved in those stress levels, but I’d argue that the speed – or rather lack of it – and lack of transparency are two of the biggest.
It’s easy for mortgage professionals to take the process for granted, since we work with it every day, but for borrowers – certainly those buying for the first time – it can feel completely alien. They want to take out a sizeable loan, to purchase a home of their own, and yet they are often left feeling in the dark about what’s actually going on.
This is exacerbated by the slow application process. It has become the norm for borrowers to apply for a mortgage and then hear nothing for days, sometimes even weeks. They don’t know whether they will be accepted, or whether they will need to go to Plan B – or perhaps even Plan C, D or E – in order to continue with their homebuying ambitions.
That sort of uncertainty will inevitably lead to sleepless nights and stress, leaving borrowers desperate to avoid ever going through it again.
“It has become the norm for borrowers to apply for a mortgage and then hear nothing for days, sometimes even weeks”
WE CAN DO BETTER
The question of speed is one that we have adopted a laser-like focus on addressing at Atom bank. We’ve worked closely with brokers to refine our technology and processes, pinpointing the changes we can make which mean a shorter timescale for brokers and borrowers.
That work has had an incredible impact too. The gap between application and offer is down to an average of around three days, while over the last six weeks over a quarter (27%) of applicants are getting an offer on the very same day.
The individual examples are even more extraordinary. We had one case recently where the broker, Jessica Pym of Finamply, and her client were having issues accessing the funding needed for a property purchase. We were not only able to provide an offer, but we did so in just 12 seconds.
That sort of speed benefits not only the client, who had found the ordeal incredibly stressful, but the broker too.
Jessica said that knowing she could relax about the case and move onto supporting another client was “hugely helpful”.
“From an admin perspective, I have to keep on top of the case and see what’s going on when we are waiting for an answer, which again takes time and energy, so not having to worry about that takes the pressure off and lets me help other clients,” she added.
WORKING TOGETHER
I would argue that Atom bank has become well known for the speed of service we deliver. When we topped the bank category in the latest Smart Money People study – for the second straight poll – it was highlighted as a significant factor, with the bank scoring 92% on both speed to offer and online tools and systems.
That’s a great sign that brokers not only see the improvements that we’ve made, but can see the value they are adding to them and their clients.
There is always going to be an element of stress involved in taking out a mortgage. It’s the largest loan most of us will ever take out, and our homes can be a hugely emotive subject.
But there’s no question that we can make the process much less stressful for everyone involved. Working together, we can deliver a faster and more transparent process, which will mean far fewer sleepless nights for borrowers.
