8 out of 10 brokers settle on affordability tech without shopping around
The study, which spoke to more than 400 brokers, found that while 70% of brokers say they use an affordability platform as part of the research process on at least two-thirds of their cases, only 1 in 5 shop around for the best platform.
Tanya Toumadj, (pictured) CEO at Mortgage Broker Tools, said: “This research comes from our Affordability White Paper, which was commissioned as an independent study into the changing affordability landscape, how brokers integrate affordability into their advice process and how affordability can increase the number of lenders considered for a client, often changing lender recommendation.
“It was encouraging that the researchers found so many brokers use technology to assist their affordability research, but also surprising that such a large number of brokers just settle for the first platform they use. There are many different options available now and some are better than others.
“For example, 64% of brokers said that accuracy was the most important feature of an affordability platform to help ensure they are selecting the most suitable lender, rather than just submitting a case and hoping for the best. However, different platforms offer different levels of accuracy. As part of the study, brokers were asked how accurate their chosen affordability platform was. The responses found MBT was the most accurate platform, with 79% of those questions saying it returned results that were accurate on the majority of cases, and a further 11% saying it was always accurate. This compares with other platforms where a lower figure of 67% who said the platform was accurate on the majority of cases.
“To test the accuracy of the platforms, an independent researcher then ran seven different case scenarios through the different platforms and matched these against actual lender calculators. MBT matched the lender calculator in all scenarios, giving more accurate results than the other platforms.
“The conclusion is that perhaps the market requires a bit more awareness of the platforms on offer for brokers and brokers could shop around first before jumping on board. Insights platforms like Smart Money People can help to point brokers in the right direction when they are shopping around, and I’m very pleased to say that Mortgage Broker Tools has recently been rated the Best Affordability Tool Provider as part of its Mortgage Lender Benchmark study for the fourth time running.”