The new development is in line with the FCA’s MMR affordability guidelines, encompassing the potential ‘1% rate rise effect’ scenario, and sees Mortgage Brain become the first sourcing system provider to offer this service.
Available on the latest version of MortgageBrain, the new Rate Shock analysis capability features a warning triangle to indicate that the borrower may not be able to afford a mortgage if rates rise by up to 3% in the next five years for every selected mortgage product.
In addition to the warning triangle, the new Rate Shock analysis facility also features a detailed repayment scenario for each product selected, which includes a customer’s affordability amount, the product’s monthly payment amount and the monthly repayment amount in the situation of a 1, 2 and 3% rate rise in the five years from taking out the loan.
Mark Lofthouse, CEO of Mortgage Brain, said: “Our new Rate Shock analysis capability has been designed to support the mortgage advice and sales process in a post MMR environment and allows brokers to quickly identify the effect that rate changes will have on the repayment amounts of a mortgage loan.
“All new MortgageBrain is the only sourcing system to offer this facility and by being able to see the future affordability scenario for a product, brokers will be able to deliver a better quality of service to their customers.”
