Brokers have overwhelmingly called for lenders to take a more affordability-driven approach to product development, according to an independent study carried out by Grey Matter Marketing Solutions director Jeff Knight.

The survey, which had 425 respondents and was commissioned by Mortgage Broker Tools (MBT), found that there was a clear demand for lenders to make greater use of available affordability data in their product development.

However, the research found that brokers are not confident that all lenders will choose to take this approach. Only 19% of respondents said they thought that all lenders would take a more affordability-driven approach to product development, while 28% said that only the smarter lenders would go down this route. The remaining brokers said they would like to see this happen but did not have confidence that it would.

The Association of Mortgage Intermediaries chairman and Coreco Mortgage Brokers managing director Andrew Montlake explains that the current climate is affecting mortgage affordability, which is “taking on a new dimension in a way we have not seen for many years”.

The majority of respondents (86%) believe that mortgage affordability has become more complex than ever, with so many different lenders applying so many different rules.

Given the economic climate of rising inflation, lenders have suggested that they may update their affordability rules more often, making mortgage affordability more complex still and harder for brokers not using mortgage affordability platforms.

Montlake says: “This report shows just how complex mortgage affordability is right now and how invaluable mortgage affordability platforms can be to mortgage brokers; saving them time and helping to provide clients with a swift and professional service.”

Meanwhile, 76% of brokers stated that having accurate affordability was more important than ever, with accuracy being a key benefit of mortgage affordability platforms, and a significant outcome is time saving.

The report found that brokers who use mortgage affordability platforms, do so for most of their cases. Approximately 70% of brokers use a platform for at least two-thirds of cases or more.

The white paper noted that there has been a fast adoption of these platforms, which is set to continue as brokers realise the real time benefits.

“The industry still needs more brokers and more lenders to be fully immersed with mortgage affordability platforms, in the same way as the industry has got integrated with mortgage sourcing systems,” the paper states.

The research highlighted that once a broker starts using such a platform, they quickly realise the full value for money and potential for their business.

It also revealed that the most common use of a mortgage affordability platform is in cases where there is more complex income and where the client has a high proportion of overtime/bonus, while it is least used for older clients or BTL (buy to let).

Mortgage affordability platforms have become integrated into the way a broker operates. The research found that 88% of brokers either always or sometimes double check results on a lender’s website after using the mortgage affordability platform.

The biggest benefit of mortgage affordability platforms is that it saves them time, according to 56% of brokers surveyed. This was followed by 27% of brokers who suggested that the biggest benefit is that it helps them place a case.

The research noted that brokers who use an affordability system save on average 47 minutes per case.

Commenting on the survey, Mortgage Broker Tools Tanya Toumadj says: “This research has confirmed that affordability is a key issue for brokers and their clients. It forms an integral part of the advice process and has a significant bearing on their choice of lender.

“The white paper reveals what steps brokers are taking to ensure the best affordability results for their clients, what they want lenders to do when it comes to affordability, and what lenders are doing to be more competitive and create data driven affordability products.”

“Lenders are increasingly working on a more data- and affordability-driven approach to product development. We are already working with a number of lenders on developing their propositions based on millions of data points taken through real cases processed through MBT affordability,” Toumadj adds.