Mortgage affordability complexity greater than ever

Published on

86% of brokers believe that mortgage affordability is more complex than ever, according to research by Mortgage Broker Tools (MBT).

The survey conducted amongst more than 400 brokers found that 43% said they strongly agreed affordability is more complex than ever, with a further 43% saying they agree.

76% of brokers also agree that having access to accurate affordability calculations is more important than ever to help them navigate the complexity.

These results come from an upcoming Affordability White Paper, which has been commissioned as an independent study and will be available later this month. The researchers undertook a full study of 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 and change lender recommendation.

Tanya Toumadj, CEO at Mortgage Broker Tools, said: “At MBT, we process a huge amount of data from live broker cases and we use this to educate the market about affordability and help lenders to refine their propositions. But we wanted to better understand the behaviours and attitudes of brokers when it comes to affordability.

“So, we commissioned researchers to undertake this independent White Paper to really get under the skin of today’s market. When it comes to the role of affordability in the advice process, the increasing complexity and the importance of accuracy, the results were conclusive.

“This is a key area of the market and it’s an area that is impossible to navigate without the right technology. We are looking forward to releasing more information later in the month about how brokers are using technology and what they want to see from lenders in the coming weeks.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

EXCLUSIVE: Mortgage industry launches festive concert to aid homeless

A collective of leading mortgage brokerages are joining forces this festive season to raise...

Virgin Money and Clydesdale Bank cut product transfer window to four months

Virgin Money and Clydesdale Bank are reducing the length of time customers can apply...

The Leeds cuts mortgage rates and lowers barriers for first-time buyers

Leeds Building Society has announced a raft of mortgage rate reductions of up to...

Accord widens access for those on Universal Credit and without indefinite leave to remain

Accord Mortgages has relaxed key elements of its lending criteria in a move it...

Vulnerable equity release customers still overlooked, warns ERG

The Equity Release Group (ERG) has warned that the financial advice industry is failing...

Latest publication

Latest opinions

HMOs: market realities, future prospects, and the broker opportunity

The HMO sector remains one of the most dynamic parts of the private rented...

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Other news

EXCLUSIVE: Mortgage industry launches festive concert to aid homeless

A collective of leading mortgage brokerages are joining forces this festive season to raise...

Virgin Money and Clydesdale Bank cut product transfer window to four months

Virgin Money and Clydesdale Bank are reducing the length of time customers can apply...

The Leeds cuts mortgage rates and lowers barriers for first-time buyers

Leeds Building Society has announced a raft of mortgage rate reductions of up to...