MortgageGym is supporting mortgage applicants with lower credit scores by adding specialist lenders to its platform.
Together and Precise Mortgages will be added to MortgageGym at the end of May, and Kensington Mortgages and Vida Homeloans from June.
The robo-adviser says it’s adding the specialist lenders because it believes “a sizeable minority” of mortgage applicants are excluded from mainstream high street lenders. It says 39 per cent of its online users do not meet the criteria of most traditional lenders and have a credit score of 720 or below (rated poor or very poor by Experian).
The online portal plans to automatically direct these applicants to live brokers that specialise in advising those with lower credit scores.
This advice will be supplemented by Open Banking technology that MortgageGym plans to launch this summer. This will match live data from applicants’ bank accounts to lenders’ internal scorecards.
A YouGov survey commissioned by Together found 54 per cent of mortgage applicants were rejected for lifestyle choices for reasons that many would consider the “new normal”.
These include a low credit score, lack of credit history, too many credit applications, an unsuitable employment type, or insufficient employment history.
MortgageGym co-founder John Ingram says: “With the nature of work in Britain having transformed dramatically as traditional employment patterns have shifted and a growing spectrum of lifestyles emerging, the mortgage industry has not kept up with the times.
“A key driver in this shift has been the emergence of the gig economy, zero-hours contracts, a rise in self-employed and people working longer. Many high street lenders have been slow to adapt to such diverse credit cases and borrowers with irregular income.
“Most mortgage providers’ automated decision-making and rigid criteria mean that many people are locked out of the mortgage market. As a result, an emerging market of specialist lenders has stepped in to meet these needs and now we are bringing these offers to as wide an audience as possible.”