Affordability calculators are helping to protect consumers from falling behind in their mortgage payments, according to GMAC-RFC.
The claim is made by GMAC-RFC in a speech published by the Social Market Foundation.
During his speech, Stephen Knight, executive chairman of GMAC-RFC, stated the old-fashioned method of manually checking income fails to determine real affordability and leaves consumers at greater risk of falling into arrears.
The average amount of sub-prime lending arrears after two months is 9%, according to a report by Fitch.
GMAC-RFC has revealed its figure is actually 5%, almost half the industry average.
Both GMAC-RFC and the Council of Mortgage Lenders report 0.4% of prime lenders to be in serious arrears.
The figures were first made available at a GMAC-RFC-sponsored debate on responsible lending held by the SMF.
The event was chaired by John McFall MP, chairman of the Treasury Select Committee.
Fiona Price, director of cross market interventions at the Department of Trade and Industry and Peter Tutton, social policy officer at the Citizens Advice Bureau also spoke at the event.
Knight says: Lenders have a duty to treat their customers fairly but many simply do not understand the impact antiquated underwriting systems have on arrears.