Top 10 lenders not best for affordability in three-quarters of cases

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Mortgage Broker Tools (MBT) has revealed that the top lender for affordability is not one of the top 10 lenders in 73% of cases.

Analysis of data taken from thousands of cases processed through MBT Affordability found that the best option for customers who want to maximise their affordability is from a lender outside of UK Finance’s list of the top 10 lenders on nearly three quarters of cases.

In 7% of cases the only lenders that are able to provide the loan size requested by a customer are lenders outside of the top 10. This means that roughly one in 10 customers risk being offered a loan below the amount they need because a wider range of lenders is not being researched.

This data analysis by MBT follows a recent survey that said 58% of brokers rarely use an affordability calculator from a non-top 10 lender.

Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “The UK mortgage market is wonderfully competitive and diverse environment, which means there is usually a good solution for a client if you know where to look. Often the best option is not found in the most obvious place and brokers who confine their research to the top 10 lenders risk missing out on the most suitable choice for their client.

“This research doesn’t have to be time-consuming or complex – MBT Affordability searches 42 residential affordability calculators in under a minute, displaying screenshots of each of those populated calculators so that brokers can make recommendations in full confidence.”

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