High-street lenders are now processing mortgage applications much faster, giving hope to eager homebuyers and sellers.

New data reveals that big-name banks have cut their average mortgage processing time by 30%, down from 14 days in 2022 to just 10 days this year. This means you could be getting the keys to your dream home even sooner!

This positive news comes from a recent report by financial technology experts finova and MSO, who surveyed 43 different mortgage lenders across the UK. These included well-known high-street banks, building societies, smaller regional lenders, and those specialising in more complex applications.

Smaller Lenders Also Stepping Up

While the big banks are leading the way, smaller regional lenders are also pulling out all the stops to speed up the process. They’ve managed to cut their average processing times from 23 days to a much more manageable 19 days.

However, if you’re looking for a more specialist mortgage, for example, a buy-to-let, you might need a bit more patience. These applications tend to be more complicated, meaning they still take around 28 days to process.

Technology Turbocharging Applications

So, what’s behind this welcome boost in efficiency? Technology is playing a huge role. The report found that a massive 75% of lenders are happy with how automation is streamlining the mortgage process, making things faster and smoother for everyone.

This focus on technology isn’t surprising, given the upheaval following last year’s Mini Budget. Since then, 61% of lenders have improved their systems for launching new mortgage deals, while 56% have made their criteria and policies clearer.

Brokers Remain Essential

Even with these technological leaps, using a mortgage broker is still highly recommended. The report found that 91% of mortgage applications went through brokers this year, showing just how valuable they are in helping borrowers navigate the market and find the perfect deal.

Commenting on the findings, a spokesperson for finova and MSO said: “It’s great to see lenders embracing new technology to make life easier for borrowers. This is just the beginning of a new era for mortgages, where things are faster, smoother, and all-round better.”

So, whether you’re a first-time buyer or a seasoned homeowner, there’s a good chance your next mortgage application will be the smoothest one yet.