Affordability based calculations help brokers write more business research published today claims.
A survey of mortgage brokers conducted by Alliance & Leicester has found 58% of mortgage brokers believe affordability based decisions enhance their client’s confidence in their ability to afford to pay for a mortgage.
Nearly a third of the same group of brokers (30%) say it also enhances their confidence in lenders.
Online capability is high on brokers’ agenda as thee in four (75%) say getting a lending decision online is one of the most important elements of an effective lending decision. Two-thirds (67%) of brokers say this offers the ability to offer greater flexibility and higher loans to customers who can genuinely afford them, claims A&L.
Brokers also cite speed (82%) as an important factor to a lending decision along with a bespoke approach to clients’ personal circumstances (73%).
Mehrdad Yousefi, head of intermediary mortgages at A&L, says the independent research supports the lender’s own feedback from brokers. “Lending based on affordability benefits brokers by saving them time and enables them to undertake more business. Our online affordability calculator recognises that every client has different financial circumstances and can help enhance confidence in a client’s ability to afford a mortgage,” he says.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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