Headlines in April revealed that the new TSB IT system had severe problems and prevented many of their customers from paying bills with their bank cards.
What has now been revealed is that, before the IT breakdown, TSB had launched its “Mortgage Pro” system, which was designed to streamline the mortgage application process for brokers. The aim of the system was to give an initial mortgage offer within 15 minutes. The bank was also offering competitive rates, which meant that a large number of brokers wanted to access the system. The new system could not cope with the high volume of enquiries. Brokers who had previously submitted client documents found that they had not been transferred to the new IT system so were asked to submit them again.
The backlog in processing mortgage applications caused the TSB to stop offering new mortgages. Brokers were not happy as their clients complained about delays in processing their applications. It was especially difficult for people wanting quick property purchases, and many asked their brokers to find alternative lenders when they were informed of the TSB delays.
A TSB spokesperson also blamed bad weather for the delays saying:
“Due to unprecedented demand for our mortgage offering combined with severe weather conditions, TSB experienced delays to our processing times which created a backlog of customer mortgage applications in March.”
IT systems can make the residential and commercial mortgage application process more efficient for mortgage brokers, but only if they work correctly.