Page 6 - The Pulse Issue 6 Online

HOW FAR WILL MORTGAGE

AUTOMATION GO?

MARKET UPDATE

Long since talked about and now it’s hitting our mixing the latest technology with experienced advisers are
marketplace. Lenders are finally using technology able to provide a seemingly smooth experience for the
to its full advantage, carrying out instant checks client.
on client’s income and expenditure. Less broker input in the ‘robo world’ will undoubtedly
increase competition in the industry as these firms will
By working with HMRC along with the banks and building be able to make their fees more competitive and possibly
societies, some lenders are now able to carry out the remove them all together; whilst this can only be a good
required checks electronically at the point of application, thing for the consumer, it does create more of a challenge
meaning clients will not need to demonstrate affordability for the average broker.
through the provision of payslips and bank statements.
Robo-advice, however should not be seen as the brokers BORROWERS AREN’T JUST NUMBERS
No, this is not fast track, nor is it the return of the self- death knoll. Yes, we may see simple straightforward
certification mortgage. By accessing client’s income details mortgages transacted with minimal if any human
and bank statements along with current credit file checks, intervention, but for every one of these mortgages there
lenders are able to accurately verify information provided are 3 or 4 where income is tight, a recent credit card
on the application form. payment was missed or any one of a plethora of reasons
mean a case cannot be completely automated. These At Magellan, we don’t credit score. We believe that our manual GET IN TOUCH:
underwriting guarantee offers borrowers a personal service that
This is without doubt a double-edged sword. On the one people still require the services of a real broker. means we approach every borrower’s circumstance with an open view.
side lenders will be able to provide a faster, smoother Our product ranges offer your customers a variety of flexible solutions,
and more seamless consumer journey, but what does this The current insurance market provides us with a good as we can consider: 0207 197 9424
mean for the broker? indicator of where our market may go. Today customers enquiries@magellanhomeloans.co.uk
can go to a number of consumer websites and obtain life • Using the latest years share of net profit + remuneration +
No further need to obtain proof of income and expenditure insurance, home insurance and unemployment insurance discretionary spend for Company Director’s and self-employed
is NOT the correct answer. In fact, a lender’s ability to verify through a totally automated system. Despite this clients borrowers; www.magellanhomeloans.co.uk
this information direct from the source, means brokers still prefer to deal with a broker who inspires confidence • Accepting self-employed borrowers and contractors with at least
are, if anything, at an increased risk of being penalised that the product is genuinely suited to their specific 12 months trading history;
for providing information that is subsequently found to be individual circumstances. • A flexible approach to lending beyond state retirement age;
inaccurate or fraudulent. • Regular commission, bonuses & overtime for employed borrowers;
What will the future hold in the longer term? Sophisticated • Complex incomes including agency/zero hours, pensions, second
The need for brokers to up their game has never been customer profiling, formed from data from customers’ jobs and investments;
greater, not only to ensure they provide lenders with correct income, spending habits and needs, teamed with real-life • First-time buyers with a family gifted deposit;
and accurate information at the point of application but advisers aiding the sales process appears to be part of • Borrowers with an impaired credit history.
also, as with the lenders, improving the customer journey the next wave of developments. For now, however, do not
as technology continues to stride forward. underestimate the value a client places in, and is prepared Our product highlights:
to pay for, an experienced and qualified broker. Up to 85% LTV | Rates starting at 2.99% | Variable rates with no ERCs |
Robo-advice, regardless of the varying positive and 2 and 3 years fixed rates | 10% overpayments allowed per annum ERC-
negative views across the industry is here to stay and David Ewing free.
whilst I personally feel we are a few years away from truly Managing Director
automated mortgage applications, the current hybrids