According to independent research by Gray Matter Marketing Solutions Director Jeff Knight, brokers have overwhelmingly called on lenders to adopt a more affordable approach to product development.
The survey, which had 425 respondents and was commissioned by Mortgage Broker Tools (MBT), revealed that there was a clear demand for lenders to make greater use of available accessibility data in their product development.
However, the research found that brokers are not confident that all lenders will choose to take this approach. Only 19% of respondents said they thought all lenders would take a more affordable approach to product development, while 28% said only the smartest lenders would go this route. The remaining brokers said they would like this to happen, but were not convinced it would happen.
President of the Association of Mortgage Intermediaries and Managing Director of Coreco Mortgage Brokers, Andrew Montlake, explains that the current climate is affecting mortgage affordability, which “is taking on a new dimension in ways we haven’t seen since many years”.
The majority of respondents (86%) believe mortgage affordability has become more complex than ever, with so many different lenders applying so many different rules.
Given the economic climate of rising inflation, lenders have suggested that they may update their affordability rules more often, making mortgage affordability even more complex and difficult for brokers not using no mortgage affordability platforms.
Montlake says: “This report shows how complex mortgage affordability is at the moment and how invaluable mortgage affordability platforms can be for mortgage brokers; saving them time and helping to provide customers with prompt and professional service. »
Meanwhile, 76% of brokers said it was more important than ever to have accurate affordability, with accuracy being a key benefit of mortgage affordability platforms, and a big time saver is a significant result.
The report found that brokers who use mortgage affordability platforms do so in most cases. About 70% of brokers use a platform for at least two-thirds of cases or more.
The whitepaper noted that there has been rapid adoption of these platforms, which is expected to continue as brokers realize the real-time benefits.
“The industry still needs more brokers and more lenders to be fully immersed in mortgage affordability platforms, the same way the industry has integrated into mortgage sourcing systems,” indicates the document.
Research has highlighted that once a broker starts using such a platform, they quickly realize the best value and potential in their business.
He also revealed that the most common use of a mortgage affordability platform is in cases where there is more complex income and the client has a high proportion of overtime/bonus, whereas ‘It is less used for older customers or BTL (buy to let).
Mortgage affordability platforms are now integrated into the operation of a broker. Research found that 88% of brokers always or sometimes check results on a lender’s website after using the mortgage affordability platform.
According to 56% of brokers surveyed, the main benefit of mortgage affordability platforms is that they save time. This is followed by 27% of brokers who suggested the biggest benefit is that it helps them place a case.
The research noted that brokers using an affordability system save an average of 47 minutes per case.
Commenting on the survey, Mortgage Broker Tools Tanya Toumadj said, “This research has confirmed that affordability is a key issue for brokers and their clients. It is an integral part of the counseling process and has a significant influence on their choice of lender.
“The white paper reveals what steps brokers are taking to ensure the best accessibility outcomes for their clients, what they want lenders to do about accessibility, and what lenders are doing to be more competitive and create data-driven accessibility products.”
“Lenders are increasingly working on a more data-driven and affordability approach to product development. We are already working with a number of lenders to develop their proposals based on millions of data points from real cases handled through the affordability of MBT,” adds Toumadj.