# Mortgages for millennials Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-10-25 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Why Banks Need to Revamp Mortgage Processes for the Digital Age Meta Description: Discover why banks need to update the mortgage application process for the digital age, as Peter Veash of The BIO Agency discusses the latest trends in Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/mortgages-for-millennialshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img9870-1977-1736844414999-compressed.jpg) _Banks should overhaul the_ _mortgage process_ _for a digital age before disruptors get there first, says Peter Veash, CEO of The BIO Agency_ It appears that the housing market is defying any fears of a crash after the Brexit vote as gross mortgage lending hits its highest August level since 2007. The Council of Mortgage Lenders said its members had advanced a total of £22.5billion during the month, 7% higher than July’s figure and up 15% year on year. This announcement is obviously good news for the average home buyer, while the [Bank of England’s decision to cut interest rates](https://www.financedigest.com/czech-interest-rates-already-at-high-level-central-bank-governor-says.html "Czech interest rates already at high level, central bank governor says") to a new low of 0.25% in early August will have played its part, as more people enquire about lower mortgage rates from their high-street banks. But herein lies a problem. In a [world where technology has disrupted](https://www.financedigest.com/unfolding-the-great-payments-disruption-how-consumers-can-navigate-this-new-financial-world-and-how-financial-institutions-can-rise-to-the-challenge.html "Unfolding the Great Payments Disruption – how consumers can navigate this new financial world and how financial institutions can rise to the challenge") everything from how we book a taxi to where we stay when we’re on holiday, the process of applying for a mortgage still hasn’t changed. [Banks still expect digital](https://www.financedigest.com/standard-chartered-rolls-out-digital-bank-in-hot-singapore-market.html "Standard Chartered rolls out digital bank in hot Singapore market") savvy consumers, who rely heavily on comparison websites and peer-to-peer recommendations, to search by mortgage rate and then make an in-branch appointment and endure a time-heavy meeting in which their spending habits are scrutinised and outdated profile information is most likely used to assess their ability to repay a loan. This experience could hardly be described as ‘effortless’, and in the worst case [scenario might even leave such a bad taste in consumers’](https://www.financedigest.com/global-emi-shielding-market-significantly-hit-by-lack-of-consumer-demand-scenario-post-covid-19-crisis-likely-to-remain-gloom.html "Global EMI Shielding Market Significantly Hit By Lack Of Consumer Demand; Scenario Post Covid-19 Crisis Likely To Remain Gloom") mouths that they go running elsewhere. Yes, some disruptor banking brands including digital-only, technology-led banks with trendy names like Atom and Starling have spiced up the [current account](https://www.financedigest.com/coffee-current-accounts-and-the-commoditisation-conundrum.html "Coffee, current accounts and the commoditisation conundrum") market. But for the most part, mortgages have refused to move with the [digital times](https://www.financedigest.com/the-real-time-pcr-qpcr-market-to-get-digitally-innovative.html "The Real-Time PCR (qPCR) Market to get digitally innovative"). Those more nimble [challenger banks](https://www.financedigest.com/the-rise-of-challenger-banks.html "challenger banks") have used their technology advantage to make the customer experience more appealing, but it seems that the whole mortgage experience is such a complex trail of paper and credit scores that they haven’t wanted to touch it at all. This [provides more traditional banks](https://www.financedigest.com/digital-banking-traditional-banks-vs-fintech-providers.html "Digital banking: Traditional banks vs. fintech providers") with an opportunity. The advantage of the high-street [bank is that they often know their local customer](https://www.financedigest.com/britains-metro-bank-returned-to-profit-in-september-sees-no-customer-stress.html "Britain’s Metro Bank returned to profit in September, sees no customer stress") base and therefore enjoy a relationship with them built on long-established trust and loyalty. If they decided to invest in making the mortgage application process a cleaner, smoother more customer focused [digital experience](https://www.financedigest.com/choosing-the-best-digital-experience-platform-dxp-in-financial-services.html "Choosing the best Digital Experience Platform (DXP) in financial services"), their loyal customer-base would be far more likely to forgive any initial upheaval for a longer-term high-street banking solution. It wouldn’t even be that difficult – online mortgage advisor Trussle teamed up with Zoopla earlier this year to launch a [digital service that transforms](https://www.financedigest.com/maintaining-security-and-compliance-amid-digital-transformation-in-financial-services.html "Maintaining Security and Compliance amid Digital Transformation in Financial Services") the finding and financing of a home into one seamless consumer journey. The online experience uses real profiles and abilities to repay and if [mortgage searchers qualify](https://www.financedigest.com/how-can-i-qualify-for-more-on-a-mortgage-product.html "How Can I Qualify for More on a Mortgage Product?"), they receive a ‘Mortgage in Principle’ in less than five minutes and go on to secure that mortgage within 24-hours. This affordability [data is then also used to drive future](https://www.financedigest.com/the-future-of-energy-tech-and-data-are-driving-change-fast.html "The Future of Energy: Tech and Data are Driving Change, Fast") searches, presenting new buyers with other affordable properties in desirable postcodes. The new service is made possible by Trussle’s proprietary technology – an algorithm that compares more than 90 lenders in real-time to give potential homebuyers the best value mortgage on the [open market](https://www.financedigest.com/eex-markets-to-remain-open-as-power-prices-soar-statement.html "EEX markets to remain open as power prices soar – statement"), faster than any other broker, bank or building society. There’s little doubt this is the beginnings of disruption within the [mortgage sector](https://www.financedigest.com/caixabank-proposes-sector-wide-freeze-in-variable-mortgage-costs-source-says.html "Caixabank proposes sector-wide freeze in variable mortgage costs, source says"). [Banks need](https://www.financedigest.com/could-the-npa-be-the-catalyst-banks-need-to-transform-their-payment-networks.html "Could the NPA be the catalyst banks need to transform their payment networks?") to realise this and act faster than the taxi trade when somebody mentioned, ‘there’s this new app called Uber’. So what can banks do to prepare? Well, first they [need to talk to their customers](https://www.financedigest.com/you-dont-need-magic-to-anticipate-your-customers-needs-just-the-right-tech.html "You don’t need magic to anticipate your customers’ needs, just the right tech") to discover the most common grievances with the mortgage application process. The tracking of applications seems to always be a [big pain point](https://www.financedigest.com/ecb-goes-big-with-50-basis-point-hike-ending-negative-rates-era.html "ECB goes big with 50 basis-point hike, ending negative rates era") for consumers, with over half of calls to call centres being around, ‘whats the status of my mortgage application?’ [Digital technology](https://www.financedigest.com/how-banks-can-use-digital-technology-to-become-more-sustainable.html "How banks can use digital technology to become more sustainable") could easily provide an online tracker and visibility of applications to ease congestion at call centres and put the customer more in control. [Banks could then start to look at their products and match them with customers’](https://www.financedigest.com/any-business-can-now-offer-their-customers-financial-services-how-embedded-finance-is-reinventing-the-wheel-when-it-comes-to-banking.html "Any business can now offer their customers financial services: How embedded finance is reinventing the wheel when it comes to banking") life stages. Added [value services like assisting with the moving process and generally making customers lives easier is an area banks](https://www.financedigest.com/becoming-more-than-a-bank-adding-value-through-financial-solutions-as-a-service.html "Becoming more than a bank: adding value through financial solutions as-a-service") should already be moving into. But most of all, [banks need](https://www.financedigest.com/scams-have-eroded-digital-trust-banks-need-to-do-more-to-combat-the-industrial-scale-of-scams-in-the-uk.html "Scams have eroded Digital Trust – Banks need to do more to combat the industrial scale of scams in the UK.") to sort out the basics and get their houses in order. Astoundingly, many banks still don’t allow you to make changes to your mortgage account online from simple transactions such as payment holidays or over payments – which seems counter intuitive, when you consider that many other industries have handed complete control over to the consumer and allow them to tailor every facet of the [customer experience](https://www.financedigest.com/improving-customer-experience-and-profits-with-embedded-payments.html "Improving customer experience and profits with embedded payments") via a convenient and intuitive medium. Basic functions like these should be in place so [customers can do them digitally](https://www.financedigest.com/the-advanced-wound-management-technologies-market-to-grow-based-on-customized-digitization.html "The Advanced Wound Management Technologies Market to grow based on customized digitization"), at any time of the day or night, without having to go into a branch or phone-up. Putting digital, helpfulness and simplicity at the heart of a process re-haul could be a pivotal moment for bigger [banks working in the now very healthy mortgage market](https://www.financedigest.com/the-sperm-bank-market-to-climb-up-the-ladder-based-on-digitization.html "The Sperm Bank Market to climb up the ladder based on digitization"). It will certainly put them on a more secure footing when the inevitable disruption from [challenger banking](https://www.financedigest.com/big-bank-ceos-to-sell-lawmakers-on-relief-diversity-efforts-amid-economic-regulatory-challenges.html "Big bank CEOs to sell lawmakers on relief, diversity efforts amid economic, regulatory challenges") brands finally comes. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---