Digital mortgage platform Koodoo has chosen challenger credit reference agency Credit Kudos as its open banking provider in its quest to deliver a better end-to-end digital mortgage journey.

Koodoo works with over 40 per cent of UK mortgage lenders and powers the mortgage categories for 45 per cent of the UK price comparison market to intelligently connect homeowners with their next mortgage.

Credit Kudos’ analysis and insights, based on real-time bank transaction data, will provide lenders with an up-to-date picture of a borrower’s financial health. The firm says this will help lenders to reduce application times while offering a better customer experience.

The use of open banking will also make the entire mortgage application process simpler for home buyers – from ID checks to credit checks and final approvals – by removing the need for borrowers to manually upload documents.

Koodoo co-founder & chief executive Seb McDermott believes open banking technology will be a game changer for the mortgage sector and help even more people buy their dream home.

He says: “Mortgage lending is changing for the better. With the help of Credit Kudos’ technology, lenders and aggregators will be able to integrate open banking throughout the entire mortgage application journey, ultimately making it more seamless for both lenders and borrowers.

“The current unprecedented economic circumstances have severely altered the mortgage landscape. Many people have seen their income fluctuate as a result of the Covid-19 pandemic, making it increasingly difficult for mortgage lenders to rely on traditional credit bureau data to assess affordability.

“Open Banking data can help lenders better understand a borrower’s financial situation, going beyond traditional credit scoring to analyse real-time bank transaction data on incomings and outgoings.”

Credit Kudos co-founder and chief executive Freddy Kelly adds: “Our partnership with Koodoo will help a growing number of lenders and aggregators better assess incoming mortgage applications and improve customer service.

“Through open banking we can offer lenders a far better picture of an individual’s financial situation, enabling borrowers to access more bespoke and tailored products.”

The partnership between Koodoo and Credit Kudos will be officially unveiled tomorrow, 4 November, at the Building Societies Association’s annual Digital Mutual Virtual Conference.