At the same time, the lender is set to launch a point-of-sale decision-making tool, POS-D, which, it has claimed, will be of substantial benefit to lower risk borrowers.
By centring its pricing system wholly around risk, the lender said it could offer more competitive deals to customers with favourable risk profiles, potentially offering better-than-advertised rates across its complete range.
The POS-D system will allow brokers to access a guaranteed rate valid for 21 days, as well as speed up the process through the use of a pre-populated application form.
Graham Toy, managing director of Astra Mortgages, said that a key part of enhancing the technology was implementing the changes without creating extra work and hassle for the broker.
Headline rates on Astra’s products will be visible on all industry sourcing systems, at which point intermediaries can choose whether they want to continue to the Astra Mortgages site and input their client’s details into the system to see if they are able to improve on it.
David Jervis, chairman of Astra Mortgages, explained: “Most of today’s personal loan and insurance products are risk-based, but as of yet there has been no take up within the mortgage market. Our prices have always been good but they have not always been the best in the market. This technology will add a competitive edge to our offering.
“What I believe to be unique to POS-D is the fact that we will go both ways; if the system generates a rate that is lower than both the projected frontline rate and POS-D rate, we will honour it.”
Alan Lakey, partner at Highclere Financial Services said that while the added degree of certainty that the decision-making tool offered was an attractive prospect, the fact that brokers would have to go direct to the lender to input additional criteria would create additional work.
He explained: “The thing is, if these products do not show up on the sourcing systems then the fact that they could give my client a better than expected rate makes little difference. It might not be used simply because advisers can forget to check in alternative places.”
David Hollingworth, head of communications at London & Country, added that the competitiveness of the headline rate would subsequently take on a greater importance.
He said: “The system effectively rewards the higher quality borrower. If you can secure a better deal for your client then it is worth it, although you will always be faced with that element of uncertainty.
“We are always open to trying out new technology and it will be interesting to see the system put into practice – you have to welcome innovation.”
The products which will go live at launch are yet to be finalised but will broadly comprise the current range. Jervis said that the lender would review its offering with a view to improving upon it, depending on the system’s reception.
Jervis concluded: “Service is absolutely key to us. While we want to offer the best products to borrowers, we do not want this to compromise on service and will therefore wait until after the initial roll out to begin to add products.”
