LendInvest has described how open banking and better packaging has improved its buy-to-let processes.
Tom Steer, senior underwriter at the former peer-to-peer lender, said that it uses open banking for several things that using a regular bank statement would make quite challenging, including verifying income, mortgage payment history and deposit queries.
This is on top of the other standard checks it is able to simplify and streamline for the broker.
Steer said the lender has used open banking within the business for more than a year now but really started to reap the benefits of the system since transitioning to a new provider, Credit Kudos, which has an easy to use interface and quick sign up process.
“For the brokers we’re able to send out a simple link to the client which will satisfy the majority of packaging requirements instead of requesting a list of documents, which can be both time consuming and frustrating to produce for the borrower,” Steer said in a blog post on LendInvest’s website.
“It can also allow ourselves to answer any questions we may have about the application quickly, which will prevent the back and forth between lender and broker and result in a quicker speed to offer.
“With any new piece of technology there is a hesitancy to utilise it in a very historically manual process, because it would represent a huge shift away from the norm for brokers.
“The technology itself is a game changer in the mortgage market and we are starting to see the benefits of using the system for speed and cutting out back-and-forth questions.”
Read more: LendInvest leans on automation after busy Q1
In a separate blog post, LendInvest said that a fully-packaged case makes things easier for its underwriters and case managers as well as brokers and clients by allowing its team to make decisions faster.
LendInvest said brokers can download its packaging requirement, look for tasks on the lender’s portal and that its business development managers are keen to discuss cases with brokers pre-submission, where they can identify what information needs to be provided with a full application.
“Minimum packaging requirements are necessary for all lenders to begin progressing a case, and until the application has all required documents attached, case managers have to chase the details, increasing the burden on brokers and their clients that could potentially lead to more delays,” LendInvest said in the blog.
“This is avoided by getting the cases right first time.
“We’ve seen first-hand the difference fully-packaged cases can make for brokers and their clients by reducing stress, back-and-forth and the time to get your deal completed.
“Typically if we receive a case fully packaged we can book a valuation within 24 hours.”