Debt solutions provider Payplan has unveiled a new proposition for the mortgage industry, which seeks to improve decision making at the application stage.

Reference Point is aimed specifically at helping lenders satisfy their obligations under the Mortgage Market Review (MMR) when it becomes a reality, without any influence from sales and distribution. It aims to provide lenders with outsourced analysis, assessment and referencing of potential borrowers.

Services offered includes a phone based assessment of the borrower’s financial circumstances where the information is tested against behavioural analysis of Payplan’s existing 70,000 customer base. The client information is then validated by means of reference and assessment by a qualified team at its Grantham office. The summary of data and evidence provided to the lender is designed to enable an informed decision to be made about the likelihood of the client to default.

Payplan managing director, John Fairhurst, argues Reference Point could be a crucial tool to help lenders meet their obligations under the latest MMR proposals.

He said: “Our experience of dealing with customers who have debt problems over many years has given us a unique perspective of a customer’s ability to handle their income and expenditure. Reference Point can really add a different dimension to the lending decision making process and still be achieved within a timeframe that does not compromise the ability to turn round applications in a timely fashion.