Expert discusses the implementation of new sourcing system
LiveMore recently introduced ‘counter-offer’ to its platform with the intention of making sourcing later life products simpler for brokers.
So, why is this service important and why is it being introduced now? Mortgage Introducer caught up with LiveMore to find out.
Why is counter-offer so important?
Leon Diamond (pictured), chief executive and founder of LiveMore, said having built its own technology in-house earlier this year, the mortgage lender had continued to work on a roadmap of improvements on its later life lending platform to enrich the broker journey.
“The latest innovation is a ‘counter-offer’ facility, which provides brokers with alternative products if the original mortgage chosen does not meet criteria or affordability requirements,” he said.
Diamond added that it was a simple concept, but surprisingly no later life lender had offered this capability until now.
Once the client’s details had been inputted into LiveMore’s sourcing system, he said, all mortgage options that were available were displayed, along with the maximum borrowing amount on each product.
“As LiveMore has the broadest range of later life lending products on the market, you might be presented with a choice of interest-only, retirement interest-only, repayment or even a lifetime mortgage,” Diamond said.
This, he added, enabled brokers to discuss with their clients what options were available and how much they could borrow, without having to rekey the information and start the application again from scratch.
“We are not aware of any other lender in the later life market providing counter-offers like this but we encourage more lenders to go down this route,” he said.
After all, Diamond said it was in the customer’s interest to know about the different choices in a complex market.
“Having this counter-offer has gone down extremely well with brokers who have used it so far as it saves time and is super-efficient,” Diamond said.
However, most importantly, he said the platform clearly set out what products were available for each client in terms of affordability and criteria such as property type.
How has Consumer Duty influenced lenders?
In the new age of Consumer Duty, Diamond said, where both brokers and lenders should be looking for the best outcomes for clients, the counter-offer provided a clear picture.
He added that it could highlight where other products may be more suitable or better fit the client’s long-term goals.
The Financial Conduct Authority’s (FCA’s) recent review into the lifetime mortgage sector, Diamond said, found too many instances of inappropriate advice on the basis of not exploring all opportunities.
“LiveMore’s counter-offer capability provided brokers with choice and fit well with Consumer Duty rules by suggesting alternative solutions,” he said.
Innovation and technology, Diamond added, went hand in hand, and at LiveMore, he said the business sought to find new ways of improving the customer and broker journey.
“We believe technology is key to enabling brokers to give better advice to their clients; we are aware that not all brokers want to work in the later life lending market, but it is a growing area and one that presents a whole host of business opportunities,” he said.
The lender’s new holistic mortgage origination platform, Diamond said, made the broker’s life easier.
“Our business development managers are always happy to talk brokers through the system and offer guidance on any cases,” Diamond added.
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