It is claimed that the calculator will reduce the cost implication to the industry by over 90%.
Huntswood Outsourcing claim that they are "providing a solution at an affordable price to the industry. With the number of mortgage endowment complaints forecast to exceed 200,000 the cost of calculating the compensation, using the current provider, is large. Companies must meet the FSA's RU89 guidelines and the only software available, until today, which meets the criteria has over the last year become extremely costly."
David Brownlow, Chief Executive of Huntswood Outsourcing, commented: "We believe this mortgage endowment redress calculator is a necessary move for the industry due to the spiralling cost of the process - an increase of 15 times for some of the bigger players. Reducing the costs of calculations will be a significant benefit to all those in the industry faced with the current levels of mortgage endowment complaints. Outsourced solutions are increasingly seen as the answer to the challenges laid down by the regulatory environment in which the financial services industry operates."
The new calculator will be priced at £400 per workstation per month. The new calculator is said to be able to reduce to just £2 a case.
