Mortgage Broker Tools (MBT) has confirmed there are five lenders who will be piloting its new predictive mortgage modelling software, MBT Sandbox.

MBT Sandbox is designed to help lenders best build, price and deliver improved mortgage propositions, helping them to make smarter product, pricing, criteria and affordability decisions using advanced analytics and real-time data.

Within the Sandbox, lenders can edit over 60 criteria elements including LTV and maximum loan by mortgage type (e.g first-time buyer, interest only or new build) repayment type, term, age, and maximum income etc. Lenders can also edit initial and reversion rates, as well as stress rates, to see how pricing impacts elasticity once criteria and affordability are taken into consideration.

Sandbox uses live information from MBT’s comprehensive data resources and provides lenders with real-time insights that enable them to make smarter, data-driven decisions based on market demand.

Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “Consumer Duty is just around the corner. The new regulations will put greater emphasis on lenders demonstrating products have been developed with fair value in mind to meet particular customer requirements – and this will require data to show rationale.

“MBT Sandbox provides lenders with a ground-breaking data-driven approach to product development, enabling them to create and refine products with specific customer segments in mind. By more accurately targeting customer types, lenders will be able to more easily demonstrate the approach they have taken and their reasoning why they believe the product will result in a positive customer outcome.

“At MBT, we are now working with five lenders to help ensure they are able meet both their regulatory obligations and commercial objectives, by taking a smarter, more data-driven approach to product development.”