How affordability platforms can benefit all brokers
Lewis Lenssen (pictured) is managing director at Mortgage Broker Tools
Since the public launch of MBT Affordability in April 2019, we have processed more than 35,000 cases and completed 2.7 million lender calculations. Many of these calculations have been performed by brokers who are relatively new to the industry, who have relished the opportunity to access such in-depth and accurate affordability research to demonstrate expertise to their clients.
However, many of the calculations have also been carried out by more experienced brokers, who already have an established reputation for expertise. So, how can an affordability research platform, like MBT Affordability, add value to brokers who already have a clear understanding of the in-depth workings of the market.
Here are the top four ways that even experienced brokers can benefit from access to the latest affordability calculations from a range of over 30 lenders.
1. Experienced brokers understand that lenders regularly flex their affordability algorithms behind the scenes, without telling intermediaries or even their own BDMs. Assuming that you know the outcome of an affordability calculation can be a sure-fire way to wasting time on progressing an application that ultimately is unable to fulfil the client’s requirements.
A quick check at the outset can save a lot of wasted time and misplaced client expectations.
2. It’s not just time that this type of research can save – it can also save brokers from losing clients. In an increasingly competitive market, there is little place for client loyalty, so if another firm can find a lender to meet your client’s borrowing requirements, chances are you will lose that client.
Set against this potential outcome, the cost of carrying out thorough affordability research at the beginning of a process is far less than the ultimate cost of losing a client.
3. You are probably tired of reading comments declaring that specialist is the new mainstream, but it is true that the growing number of self-employed workers, people earning multiple incomes and owning multiple properties is making client circumstances ever more complex.
Alongside this, there are many different ways in how lenders account for multiple incomes, or properties in the background and there are numerous different ways that lenders assess income for company directors and contractors. Experienced brokers understand this dynamic and recognise the benefits of letting technology take the strain to ensure that have accurate information about an increasingly complex market.
4. Good brokers know that “best advice” is not just about sourcing the lowest rate but identifying the most appropriate solution for a client and affordability is a key element of this. Carrying out thorough affordability research at the outset of an application is a good way of demonstrating multiple lender consideration and some of the pros and cons of using those lenders.
Affordability platforms are relatively new to the market, but they are not just for new intermediaries. They can provide additional value across a number of areas and, as such, they can benefit all brokers.