MortgageGym will launch a new online affordability tool for mortgage brokers and direct applicants.
This tool will be the first to combine real time spending data from the past year, accessed via the applicant’s bank account, with their Experian credit score. This will then be compared to information on the mortgage scorecards of 65 per cent of the top 20 mortgage lenders in the UK.
Effectively this new portal will ensure applicants only see details of the mortgage deals they can afford. MortgageGym says the new system is possible thanks to new Open Banking technology.
MortgageGym says this tool will be used by both brokers and borrowers, to reduce application times.
It claims this new system will enable applicants to complete their entire application in 15 minutes; Adding that these new affordability tests will raise the eligibility or likelihood of an applicant being accepted for a mortgage from 75 per cent to 95 per cent.
MortgageGym co-founder John Ingram says: “The first immediate improvement on a traditional fact find is the increase in the spending period analysed, from a standard three months to 12 months using the online tool. This provides mortgage brokers and lenders with a far more accurate picture of an applicant’s spending patterns.
“Secondly, the tool will designate spending into distinct categories which will differentiate between different incomes and expenditures. The first of the two income categories identifies regular income including items such as an applicant’s salary, whereas the second category, irregular income, contains incomes such as freelancing work, investment returns and savings.
“Expenditure categories include: necessary committed expenditure, existing mortgage payments, rent, car loans and utility bills; non-necessary committed expenditure and lifestyle expenditure such as eating, drinking and other entertainment.”
This launch follows a recent Mortgages Market Study by the City Watchdog, the FCA, which criticised the mortgage sector for hindering applicants’ ability to shop for different mortgages by making it difficult to find suitable mortgages that they could afford.