IMLA executive director Kate Davies said mortgage lenders supported any initiative that would make transactions faster, clearer and less stressful for consumers while reducing wasted costs across the economy.
“Buying or selling a home is the most significant financial transaction most people will ever make — yet the system that underpins it has barely evolved in decades,” Davies said. “Far too many sales collapse unnecessarily, creating frustration for consumers and inefficiency for the industry. Every failed transaction is wasted time, money and emotional energy for borrowers, sellers and the many professionals involved.”
“Lenders welcome any reform that helps reduce these failures, introduces greater clarity and harnesses technology to deliver a smoother experience. The current process is ripe for change.”
IMLA highlighted four areas of particular importance to lenders:
- Reducing the number of failed property transactions
Around one in three transactions currently fall through, costing consumers and the economy hundreds of millions of pounds each year. “Every sale that collapses after mortgage approval represents an avoidable loss for buyers, for sellers and for lenders who have already completed affordability assessments and underwriting,” Davies said. “Reducing those failures will deliver real savings and greater confidence.”
- Increasing clarity and reducing stress
A better flow of information from the outset would mean fewer surprises late in the process. “Providing upfront information and standardising documentation will make the system fairer, more transparent and less nerve-wracking for everyone involved,” she said.
- Harnessing technology
Lenders have invested heavily in digitising their own processes, enabling faster approvals and smoother broker and customer journeys. But Davies cautioned that progress will only be fully realised when the entire property chain modernises together.
“Digital logbooks, verified data and interoperable systems are key, but there is still work to do to make these tools consistent and secure across the market. Industry and government must collaborate to create uniform standards that all parties can trust.”
- Raising professional standards
Davies strongly welcomed the proposal to introduce mandatory qualifications for estate agents and a new Code of Practice for property professionals.
“Mortgage lenders and advisers operate in one of the most highly regulated sectors of the economy, and advisers must achieve rigorous qualifications before advising consumers. It is extraordinary that such standards have not yet been applied to estate agents, given the importance of their role in the property chain. Professionalising the estate agency sector will help rebuild public trust and create a smoother, more accountable home buying process.”
Davies added that reforming the process could also re-energise market activity and consumer confidence:
“The current system is so clunky and unpredictable that it can be genuinely demoralising for many would-be buyers. Some simply give up altogether, and that can’t be good for the housing market or the wider economy. We need more movement at every level of the ladder, enabling people to enter the market, move up as their families grow and downsize when the time is right. A modern, reliable process would help unlock that natural mobility.”
She concluded:
“The government’s consultation is a chance to bring the property transaction process into the 21st century. Lenders stand ready to play their part in delivering a system that is faster, clearer, more consistent and more professional, for the benefit of consumers and the wider economy.”
For further information please contact:
Paula John, Paula John Communications
Tel: +44 (0)7973 435 299
Email: paula.john@imla.org.uk
Notes to Editors
About IMLA
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel, and associate providers. Its membership of 53 banks, building societies and specialist lenders includes 18 of the 20 largest UK mortgage lenders (measured by gross lending) and accounts for over 90% of mortgage lending.