Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Archaic Systems and Poor Communication Are Broker Bugbears, Say Mortgage Brokers

Two mortgage brokers have told Mortgage Solutions that lenders' outdated systems and processes are creating unnecessary work for intermediaries. Dan Gracie, co-founder of Pavilion Finance, and Chris Sykes, co-founder of MSP Financial Solutions, highlighted the repetitive nature of some lender processes, including the need to complete separate decision in principle (DIP), application and illustration forms despite much of the information being identical across each stage.

Layers of administration

Gracie branded the process a "total mess", arguing that older building societies were among the most frequent offenders when it came to relying on outdated systems and manual workarounds. Sykes said: "It's just archaic systems… It loops back to… lenders basically wasting brokers' time."

The pair argued that many lenders have introduced new forms and systems without replacing older processes, creating layers of administration rather than removing them. Gracie said: "They need to stop adding new policy to old policy. They need to replace old policy with new policy. They've all brought out these new forms, but they're adding them to the old DIP system."

Underwriting outweighs technology

While the discussion began with technology concerns, both brokers suggested that underwriting practices and communication have a greater impact on broker experience than the systems themselves. Gracie argued that "a slick application system is no replacement for good underwriting or good communication".

He described what he calls a "non-ownership underwriting approach", where one underwriter approves a DIP only for another to take over later and adopt a completely different position. "I've actually had an underwriter say: 'I do not agree with the stance of my colleague on this'," he said.

The brokers also criticised a piecemeal approach to information requests, where underwriters ask for documents one at a time rather than providing a complete list at the outset. "They've got a list of 12 things they're going to need to ask and they ask for the top one," said Gracie.

The hidden cost of lender requests

Gracie said lenders often underestimate the impact their requests have on clients and advisers. "I don't think lenders think about the chain reaction from their knee-jerk request," he said. He pointed to situations where a request for an accountant's letter can trigger a lengthy chain of communication involving brokers, clients and accountants, adding both delay and cost to the process. "It can be standard procedures that don't make sense, or an overzealous person asking for more than is needed," he added.

The discussion also touched on lender portals and secure messaging systems, with brokers arguing that responding to straightforward queries can take several minutes because of multiple logins, two-factor authentication requirements and separate document-upload systems. Sykes said these systems can become a deciding factor when choosing between lenders: "If it comes down to two lenders, I might choose the lender that doesn't have one of these systems because it makes it really difficult to get the client's work done as quickly as they want it."

Why it matters for letting agents and inventory clerks

While the report focuses on mortgage brokers, the themes of slow lender communication, repetitive paperwork and piecemeal document requests will be familiar to anyone working in lettings and property inventory work, where delays in the mortgage process can hold up transactions and move-ins.