Most of them are not confident this will happen
Most brokers want lenders to take a more affordability-driven approach to product development, new research has found.
An eye-catching 76% of brokers believe that having accurate affordability calculations is more important than ever now, showing a clear demand for lenders to make greater use of available affordability data.
However, the research, commissioned by Mortgage Broker Tools, found that brokers are not confident all lenders will choose to take this approach as only 19% said they thought that all lenders would take a more affordability-driven approach to product development.
Around 28% said that only the smarter lenders would go down this route. The remaining brokers said they would like to see this happen but did not have confidence that it would.
“This research has confirmed that affordability is a key issue for brokers and their clients. It forms an integral part of the advice process and has a significant bearing on their choice of lender,” Tanya Toumadj, chief executive at Mortgage Broker Tools, said.
“Lenders are increasingly working on a more data- and affordability-driven approach to product development. We are already working with a number of lenders on developing their propositions based on millions of data points taken through real cases processed through MBT Affordability,” she added.
Meanwhile, the research also found that 70% of brokers are using a mortgage affordability platform for at least two-thirds of their cases or more, and, on average, brokers save 47 minutes per case by using these platforms.
Around 86% of brokers believe that mortgage affordability has become more complex than ever, with so many different lenders applying so many different rules.
These figures came from the latest Mortgage Affordability Report, which was commissioned by Mortgage Broker Tools and carried out independently through a broker survey of 425 respondents.
