It allows mortgage brokers to view clients' credit commitments
Fintech mortgage lender Gen H has introduced a new feature that allows mortgage brokers to view their clients’ credit commitments when discrepancies arise during the soft credit search in the decision-in-principle process.
Previously, mortgage brokers were often unaware of the specific reasons behind a client’s failed credit check. Clients might simply fall outside lending thresholds, or incorrect information on the credit file could prevent a loan approval.
Lenders typically informed brokers of a loan denial without providing details, leading to unnecessary back-and-forth with business development managers, underwriters, and clients, causing delays.
With Gen H’s new feature – it claims a first in the UK mortgage market - if differences are found between declared credit commitments and bureau records affecting affordability, brokers will now be able to identify the type and amount of credit commitments limiting affordability, exclude commitments that will be repaid before the loan starts or correct incorrect values, and share context with underwriters for faster and clearer underwriting.
The launch of the new feature follows several recent innovations by Gen H. In February, the lender streamlined its income booster affordability, automatically showing brokers the maximum loan amount for the entire buying group and estimating owner affordability. Additionally, an AI packaging tool was introduced to analyse and categorise documents during the application process.
“From first being conceived to final implementation, this feature took almost two years to release as we explored important data privacy questions,” revealed Luke Calton, senior product manager at Gen H. “But in researching this with brokers, we saw how frustrating it was to encounter a ‘computer says no’ experience with the credit file. We have access to this information, but we were never able to openly talk about it with the customer’s best interests in mind.
“I’m pleased that now, we can treat brokers like equals when it comes to the information we find on the credit report. This transparency is in the customer’s best interests, and I’m sure it will lead to a faster and smoother application process for all involved.”
Will Rice (pictured), chief executive of Gen H, said the launch was particularly complex as they were treading new ground in terms of data sharing and customer transparency.
“But if it helps our broker partners better serve their clients, it’s worth it,” he added. “2024 is the year we’re doubling down on our relationships with our intermediary panel – and what better way than to ship market-first tools and innovations driven specifically by broker feedback?
“Our brokers should keep an eye out for many more exciting updates over the coming weeks and months.”
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