Accord is a dedicated intermediary only subsidiary of Yorkshire Building Society, the UK’s second largest mutual Building Society. They turned to Target in 2009 looking to rapidly launch into the buy to let mortgage market through its existing broker brand.

The Challenge

Accord wanted to enter the Buy-to-Let market, but was constrained by a number of factors. A number of alternative launch options were initially explored and assessed with an outsourced arrangement chosen as the strategic alternative.

Why Target Group?

At Target Group, we could offer the required platforms to support Accord to deliver in to their timescales. The solution that Target had to offer encompassed all of their requirements including:

  • The ability to launch new buy to let products swiftly into the UK market.
  • Enabling YBS to provide on-site underwriters to facilitate effective underwriting decisions and process management, in addition Target could provide Broker Support, Primary Services and Collections support.
  • Our ability to assess customers in accordance to our clients own instructions and in the style that supports the Accord brand.
Target were chosen as our outsource partner because they could provide us with the flexibility we required and could also facilitate the accommodation of our own underwriters within Target’s offices, core to facilitating effective underwriting decisions and process management. Chris Maggs, Commercial Manager, Accord Buy to Let

The Solution

Accord selected us to provide outsourced back office administration for originations, account management and collections.

Our launch plan clearly demonstrated the service development timeline and bespoke adjustments needed to meet the client’s specific requirements. The core of the solution focussed on enabling the client to launch ahead of any in-house capability whilst adhering to their risk and compliance requirements.

To facilitate this outsourced operation we deployed a new buy-to-let originations system and online broker registration and management system. In addition, our existing account servicing and arrears management software solutions were evolved to support all post mortgage pay-out operational processes. The ability to manage and configure new products in order to adapt to the dynamic market was essential. Furthermore to support this, a comprehensive suite of Management Information reports are also provided to enable our clients to see the performance of their mortgages and to monitor our performance against agreed service KPIs.

Accord also wanted close control over the portfolio risk; this was delivered through the provision of on-site underwriters at our operations centre, and secure office facilities were designed and built to accommodate this. Finally, our Compliance team ensured all relevant regulatory and industry guidelines and policies are adhered to in relation to the provision of the service.

How the partnership has developed

Throughout the partnership process improvements have resulted in sub 20 days offer turnaround time and mortgage completions at 100% of forecast. Our continually developing relationship is reflected in our arrears approach with our team of collectors employing smart collections management techniques to maximise recoveries.

The Results

The outsourced operation enabled Accord to rapidly enter the buy-to-let market, without dependency on in-house IT lead times, and overcome the challenge of conflicting business change projects.

Since the launch results have continued to be very positive for both Accord, culminating in Accord being voted “Best Buy-to-Let Lender” and “Best Intermediary Lender” in 2016 by Mortgage Finance Gazette.

Overall, we have been very pleased with the results. Target has allowed us to successfully launch into the buy-to-let products market, not only that but the utilisation of their modern technology means we are well prepared for our customers now and as we grow into the future. Chris Maggs, Commercial Manager, Accord Buy to Let

Loan & Mortgage Servicing

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