In today’s ever-evolving lending landscape, the ability to adapt quickly and efficiently has never been more critical. Lenders are diversifying like never before. For example, building societies are venturing into bridging finance, bridging lenders are expanding into the buy-to-let (BTL) market, and BTL lenders are moving into the residential space.
As lenders continue to shift their focus in search of opportunity, they must navigate unique processes, regulatory requirements, and risk profiles for different lending types. Bridging finance, for instance, demands rapid decision-making and bespoke underwriting, while BTL lending requires expertise in portfolio analysis and landlord obligations. Residential mortgages, meanwhile, are driven by affordability assessments and stringent consumer protection standards.
Without a system designed to handle these specific complexities, lenders risk inefficiencies, compliance issues, and missed opportunities. A lender expanding into new territories needs a system that can support seamless transitions and ensure consistent service levels across all products. It also needs to cater to an intermediary distribution channel which is growing by the year.
In its latest report, The new ‘normal’ – prospects for 2025 and 2026, the Intermediary Mortgage Lenders Association (IMLA) predicts that mortgage lending will grow in 2025, with brokers taking a bigger proportion of business.
The trade body predicts that the share of mortgage business done via intermediaries will continue to grow from 87% in 2024 to 89% in 2025 and 91% in 2026. Somewhat surprising, given the amount of negative mainstream press it continues to receive, IMLA also predicts a rise of 14% in buy-to-let lending to £38bn and £42bn in 2026 (up 11%). It’s also fair to say that there is also rising expectation across the industry of further growth in many specialist markets in the coming months and years.
This cross-pollination of lending types offers exciting openings for progression but also presents operational challenges. To overcome these, lenders originations systems need to tick five key boxes.
Streamlined operations
Managing diverse lending types within one system reduces duplication and inefficiencies. Teams work from a single platform, accessing shared data and tools tailored to their specific needs. This minimises the learning curve when expanding into new markets and eliminates the need for costly integrations between disparate systems.
Enhanced customer experience
Borrowers and intermediary partners expect swift decisions and clear communication, regardless of the product they’re applying for. A system that consolidates all lending types ensures a consistent and efficient journey for the borrower, improving customer satisfaction and loyalty.
Compliance and risk management
Each lending type comes with its own regulatory requirements. A versatile origination system should be built with compliance at its core, providing automated checks, real-time updates on regulatory changes, and comprehensive audit trails. This reduces the risk of non-compliance and provides additional peace of mind for lenders expanding into unfamiliar territory.
Scalability and futureproofing
The market is unpredictable, and lenders must be ready to pivot. Whether launching a new product or adapting to regulatory shifts, systems must be able to evolve alongside your business. Features like modular architecture and API connectivity enable quick adjustments without overhauling the entire system.
Cost Efficiency
Maintaining multiple systems for different lending types is resource intensive. A single origination platform reduces overheads by consolidating IT support, training, and maintenance costs, allowing lenders to reinvest in growth areas.
In a dynamic lending market, versatility is no longer a luxury—it’s a necessity. For lenders looking to diversify and thrive, investing in a flexible, future-proof originations system is the ultimate competitive advantage
