With many filters based on income multiple calculations, Mark Chilton, managing director of Purely Mortgages, believed sourcing systems faced a growing problem as more lenders adopt affordability based models.
Chilton admitted that, when using a sourcing system, finding the best product was becoming more reliant on a broker’s knowledge of the market. He said: “With a client stretching affordability, a broker has got to do a pricing search, but also use a combination of experience and checking affordability against different lenders to find the best product. It’s not as efficient as it might be.
“The biggest worry is getting the best advice trail for compliance purposes. There are limitations to sourcing systems. There is a risk they will exclude products that are affordable to the client. Brokers with more experience are going to be better, but there’s no golden solution.”
However, Mark Lofthouse, chief executive of Mortgage Brain, denied sourcing systems had problems. “An adviser will work out what a client can afford per month and all the capability to do that is on our system. Lenders change criteria frequently, so for a sourcing system to mirror it exactly is very hard, but we get close. A sourcing system’s job is to get to the top few products and it does that better than anyone else. But for a customer on the margins, then it’s absolutely right brokers have to use their experience.”
Kim Barrett, proprietor of KS Barrett & Associates, felt sourcing systems had problems in reflecting the best products for a client in general. “Sourcing systems won’t let you know all the details behind a product, like whether a lender only uses their own legal company. It comes back to using your brain and an adviser shouldn’t go rate chasing. Sourcing systems take out the personal involvement needed and a client has got to trust you.”
