Automated Valuations Boost High Tech Service Offering At Scarborough

Press release published on 7 August 2006 by Scarborough Building Society

Scarborough Building Society is this week launching automated desktop valuations – with an aspiration of providing mortgage offers in as little as 24 hours.

For the Society, this latest move further enhances Scarborough’s end-to-end mortgage processing service, which it believes is already distinctive within the industry.

Complemented also by drive-by valuations, the Automated Valuation Models (AVMs) will be used initially for the following cases:

• Standard SBS residential re-mortgages
• Loans of 60% loan-to-value (LTV) or below
• Drive-by valuations will be used for re-mortgages of between 60% and 70% LTV, while full valuations will remain applicable to loans of 70% LTV or higher

The purpose of the new approach to valuations is to make the process of re-mortgaging quicker and more efficient for customers, in line with Scarborough’s outstanding service aspiration.

Commercial Director Martin Frazer said: ‘I am delighted that we are now adding automated and drive-by valuations to our impressive suite of service developments, which will further enhance our offering to our customers and clients.

‘We believe that appropriate use of automated valuations provides a real window of opportunity in the contemporary mortgage market.

‘The house price data available to lenders is now so sophisticated that, for appropriate cases, there is no need to delay the mortgage application process with unnecessary manual activities.’

He added: ‘This development is another example of the technological drive at Scarborough.

‘For third party mortgage administration clients, our now-complete end-to-end mortgage servicing model will enable us to offer a fully automated solution, supported by an Intermediary Portal, case tracking through our electronic Mortgage Application Processing System (MAPs) and account servicing.

‘AVMs are just the latest example of how we are able to offer a credible alternative to the large-scale players in the mortgage arena.’

Chief Executive John Carrier added that the Society would consider extending AVMs to cover purchases, subject to a thorough evaluation of their success with re-mortgage cases in the fullness of time, but only after a careful and thorough review process based on experience and analysis.

‘Our objective is to provide an efficient service and to make sure we are able to agree applications as quickly as possible for our members, customers and clients – to benefit both them and any advisors they are dealing with by improving the speed of the whole process,’ he said.

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