Inside Track

Understanding the role, challenges and future plans of mortgage administrators

Inside Track

Our Commitment to Mortgage Administration

At Pepper Money, we’re committed to supporting Mortgage Administrators and the process as a whole. We value the role of mortgage administration and how it impacts your customers. Therefore, we’ll continue investing in understanding their challenges and opportunities to support and highlight how brokers and lenders could collaboratively provide a better service to mortgage customers. Our Mortgage Administrator survey in partnership with Mortgage Strategy is a step towards showcasing Mortgage Administrators’ thoughts, pain points and aspirations.

At Pepper Money, we have partnered with Mortgage Strategy to carry out a comprehensive survey amongst well over 150 Mortgage Administrators in 2023 and 2024. This annual survey aims to better understand their role, the tools they use, the challenges they face, and their future plans. In the most recent survey we have engaged with over 170 respondents that have experience working within a mortgage administration role.

MORTGAGE ADMINISTRATORS

The importance of mortgage administration is paramount and with the introduction of Consumer Duty there are additional requirements needed.

We understand for many growing firms both brokering, and the administration may be conducted by the same individual. However, in larger firms Mortgage administrators are the unsung heroes of the application process, often responsible for getting cases across the line. They play an integral role in ensuring that homebuyers and remortgage customers secure their funds in time to meet their goals. These situations often come down to small details, and good administrators are the masters of those details.

Brokers may provide the ultimate advice, but it’s often the case that the experience a customer receives is driven by the work of mortgage administrators right from the beginning of the process at the start of a fact find, through to researching the most appropriate options, submitting the application, progressing it to Offer and seeing it through to completion when the funds are released.

The characteristics of a Mortgage Administrator

What characteristics makes an award-winning administrator?

We asked respondents to identify the characteristics most important to excel as an aAdministrator and 39% of those surveyed say that the most important characteristic is being organised, with 21% saying it’s good communication and 18% saying that the ability to solve problems.

The tools of Mortgage Administrators

In order to maintain efficient processing times Administrators often have to refer to resources to ensure they are abreast with the requirements of the specific lender. Administrators have highlighted an increased dependency on lender sources such as the Lender website (32%) and the underwriting team is 3rd option with 22%. Sourcing systems remain the first choice but there has been a 6% decrease Yr on Yr.

What source of information do you utilise and refer to most when processing an application? 

The best mortgage administrators don’t just provide the most efficient and effective service possible. They also help to improve broker businesses by finding new ways of doing things, introducing new processes and developing key relationships.

However, in the mortgage trade press, the role of the administrator is often overlooked.

The research found that most administrators (61%) are also brokers, working across both disciplines to benefit their customers. Just over three in 10 surveyed said they work in a purely mortgage administrator role.

Over the past 12 months, two-thirds of distributors said the majority of the business they have processed has been remortgages.

The importance of communication

We all appreciate that all cases do not not all cases progress smoothly and in the event, there is an issue, 61% of the respondents selected the telephone as their preferred method of communication with a lender.

What is your preferred method of communication with a lender if you encounter an issue?

Obtaining a formal mortgage offer

It is extremely positive to see 26% of cases take 2 days or less for lenders to process a decision in principle before issuing a formal mortgage offer. Furthermore, there has been a slight reduction in cases taking over a fortnight to issue a formal mortgage offer.

On average, how long does it take for lenders to process a decision in principle before issuing a formal mortgage offer?

The emphasis on organisation could reflect the fact that 49% of Administrators state the time to process a mortgage in the last 12 months. Whilst 11% believe it has increased significantly. This shift means administrators must prioritise organisation to ensure their customers remain informed about the process.

Thinking of the mortgage process in the past 12 months, what has been the impact on the time it typically takes to process a mortgage?

How lenders can support mortgage administrators

Lenders like Pepper play a pivotal role in supporting Mortgage Administrators to make sure it’s easier to maintain work-life balance they are comfortable with. Respondents prioritise mortgage processing times with 20%, however, we have there has been a 60% increase in Administrators seeking access to the underwriting team (16%) as the most beneficial to their role.

Which lender characteristic is most beneficial to your role?

Mortgage Administrators work life balance

The concerning element from a new question within this year’s survey is that nearly a quarter (24%) of  administrators work at least 30 minutes overtime every day and 17% say they’re unhappy with their work-life balance.

How frequently do you work overtime (at least 30 minutes) to ensure you complete your daily tasks?

How would you rate your work-life balance?

Working efficiently and effectively alongside a host of lenders to deliver these outcomes isn’t always easy, the ability to help others to obtain a mortgage remains the most enjoyable element of an Administrator’s role with 61%.

What do you enjoy the most about your role as an administrator?

Despite this, a third (33%) say they want to continue working as a mMortgage Administrator for the foreseeable future. Just over a quarter (26%) say they will consider an alternative role in financial services and only 9% are thinking about taking CeMAP.

Thinking of your career development, in the next 1-2 years what is your preferred next step?

Mortgage administrators may not be high profile, but they are certainly highly important to the successful working of the industry. By better understanding their role and challenges, we can work together to help deliver an even better customer experience.

Mortgage Administrator Online Event

The importance of mortgage administration is paramount and with the introduction of Consumer Duty there are additional requirements needed.

This is the UK mortgage markets only virtual event specifically tailored towards mortgage administrators and paraplanners. Pepper Money has been a long term advocate of empowering mortgage administrators and exploring how to improve mortgage processing the customer journey. 

Mortgage administrators and paraplanners are an underserved but vital cohort of our intermediary audience. Mortgage administrators and paraplanners are a growing sector with increasing influence and the potential qualified advisers of the future.

Exploring the economic landscape

Hosted by Rob Barnard, Relationship Director at Pepper Money this webinar consisted of mortgage industry experts Beth Clayton, Senior Relationship Manager at VIBE Finance alongside Rob Owens, Head of Research, e.Surv Chartered Surveyors. They analyse the current macroeconomic climate and its impact on mortgage lending, uncover emerging trends and forecast the future of the UK’s property and mortgage markets. Discover the challenges and opportunities facing lenders, distributors and the broader marketplace in this insightful session.

Exploring the economic landscape

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Speakers: Rob Barnard – Intermediary Relationship Director at Pepper Money, Beth Clayton – Senior Relationship Manager at VIBE Finance and Rob Owens – Head of Research, e.Surv Chartered Surveyors

How to be more you… as a mortgage administrator

Mortgage administrators play a crucial role in brokerages, ensuring efficient processing and timely mortgage offers. Recent market volatility has underscored their importance, highlighting challenges like rate withdrawals and delays that necessitate strong systems. As indications point towards a rebounding mortgage market, Pepper Money places high value on wellbeing as market activity increases. Effective workload management and balance are essential for job satisfaction and effectiveness. Join us in this session to explore how Pepper Money supports brokers and administrators for sustained performance and positive outcomes, emphasising the importance of wellbeing in achieving success.

How to be more you… as a mortgage administrator

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How Mortgage Administrators Can Build Their Personal Brand and Progress in their Career

How Mortgage Administrators Can Build Their Personal Brand and Progress in their Career

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Speakers: Rob Barnard – Intermediary Relationship Director at Pepper money, Megan Betts – Case Management Specialist at Coreco and Nicole Franklin – Probations Team Leader at Dynamo