If the predictions from the Association of Mortgage Intermediaries prove correct, the MMR could widen the gap between lenders and consumers in the mortgage market.
MMR is causing many direct lenders to rethink their models as they struggle with giving advice and brokers may see the market moving toward them as a result – which is what AMI chief executive Robert Sinclair recently predicted.
Despite the shift towards brokers, we think there is a huge opportunity for technology to play a role in the market, to make better use of the data captured and make more accurate decisions.
This is why we are seriously exploring how our Pingtree technology could solve this problem and give consumers more transparency in making the decision behind the most important purchase of their life. There’s no doubt that Pingtree’s technology could hugely benefit the consumer, providing quick and easy access to the whole market and a lender that suits their personal circumstances, but within the MMR regulations.
With historically low mortgage interest rates predicted to rise, a significant number of homeowners currently enjoying SVR mortgages will look to remortgage, and many may face barriers.
Understandably, consumers want to research mortgages online just as they do with any other purchase. But what borrowers quickly realise is that many of the online services available to them are relatively limited, with comparison engines simply generating a table of products with call back or multiple application options. However, they don’t provide any filtering of results based on the personal information provided and this could easily lead consumers to waste valuable time applying for a mortgage they don’t actually qualify for.
So what is the solution?
There’s no hiding from the fact that mortgages are such a significant purchase that consumers need to make an informed decision about which lender is best for them, and this is where Pingtree’s technology can play a valuable role. That is why we are assessing the opportunity to improve online technologies that shorten the distance between lenders and borrowers, demonstrating the same innovation that we have brought to the insurance and lending markets.
A mortgage focused product, powered by our Pingtree technology would create a consumer-focused piece of fintech that provides borrowers with whole of market access through a wide choice of products and offers, from traditional to non-traditional lenders.
This type of search technology places consumers in control. Because our Pingtree technology would only require the consumer to fill in a single application form, which is then sent dynamically to the lender panel, it dramatically cuts down the time taken to search for and assess the mortgage products and rates available.
The additional advantage of Pingtree technology is that it helps the consumer decide which products are available to them, given their circumstances, greatly improving on the services currently offered by comparison engines.
Pingtree could also increase the likelihood of the customer successfully finding a lender because one application to the whole market returns results and rates based on intelligent decisions and lender responses.
Whether the industry likes it or not, consumers are demanding greater control and expecting more when sourcing of products. Therefore lenders need to find ways to satisfy these needs and to give consumers better and more informed access to products and markets, and this is where we have a responsibility to help
