Target Group says it has cut decision-in-principle waiting times “from up to eight weeks down to just seconds” for lenders who use its Mortgage Hub system.
The business process servicing firm says its method uses open banking to provide accurate income, expenditure and property valuation information, at the beginning of the application process – rather than relying on estimates.
The business points out that its Mortgage Hub, launched last month, now allows brokers to send their clients a link to open banking permissions at the first meeting while completing the FactFind.
It says: “This will verify a client’s income and expenditure in seconds right at the beginning of the process so a lender will know whether the client can afford the mortgage they are applying for.”
The system will also it will link to a lender’s automated valuation model where available for a property.
The firm says that the move “will not necessarily remove the need for a full valuation, but it will help dramatically speed up the process by providing a real value for a property, not one estimated by the borrower or an estate agent”.
It adds: “Each automated valuation model will be matched to a lender’s risk threshold with a ‘certainty score’ of how accurate the valuation is.
“Lenders have the facility to flag a valuation as to whether it can be approved or should be reviewed. This will all be done automatically, so will provide an answer within seconds.”
“These two elements will transform the time it takes to approve a mortgage case. It means an accurate decision can be made in seconds based on real information.”
Target Group managing director Katie Pender says: “What we have designed will dramatically shorten the time it takes to apply for a mortgage, achieve acceptance and successfully complete.
“Basing a decision in principle on accurate information that can be gathered in moments should be transformative, saving time for brokers, lenders and the end client.”
