Brokers losing confidence in lender product development
Only smarter lenders will develop products based on affordability, according to brokers taking part in a recent survey by Mortgage Broker Tools (MBT).
The research found that 54% of brokers says only the smarter lenders will become more creative and develop more bespoke products, criteria and underwriting based on affordability. This is up from 30% last year, indicating that brokers are losing confidence in lenders developing products to target the needs of their clients.
Nearly a fifth (19%) of brokers say that very few lender proposition updates in the last year have enabled them to help more of their clients.
Tanya Toumadj, CEO at Mortgage Broker Tools, says: “Brokers have lost confidence in lenders doing smart things and a lot of product updates in the last year haven’t helped them. However, there is the technology available now that can empower smarter product development. We have recently launched our MBT Sandbox, for example, which provides lenders with a ground-breaking data-driven approach to product development, enabling them to create and refine products with specific customer segments in mind. We’re already working with five lenders to help ensure they are taking a smarter, more data-driven approach to product development, and we are confident that more will follow.”