To ensure the customer gets the most appropriate mortgage deal available to match their needs, mortgage brokers use many specialised professional systems. These tools, including sourcing systems, affordability systems, lender criteria comparison tools, mortgage rate alert systems and customer relationship management (CRM) software, provide insight into the mortgage market not otherwise available to the customer.
Affordability Systems
Affordability systems and calculators do the vital work of calculating the maximum loan each lender would potentially lend to a borrower. This can be sensitive to a multitude of factors, including borrower income and expenditure, age, loan to value (LTV), employment status, and type and term of the mortgage, among many others.
Affordability systems may also flag situations where borrowers fall narrowly outside a lender’s criteria, as they may be able to restructure their affairs to fit (for example, by a small increase in their deposit). This provides a baseline from which the broker can work. Two of the most popular affordability systems brokers use are Mortgage Broker Tools and Affordability Hub.
Mortgage Product Sourcing Systems
Sourcing systems allow brokers to identify the best deals by filtering and ranking mortgage products by a number of factors, including the lowest initial interest rate, the overall cost (including fees) over the product or mortgage term, or whether there is a free valuation, free legals or a cashback. The broker can then explore scenarios that trade-off elements such as the duration of the mortgage, the length of the initial fixed, discounted or tracker term, or the deposit amount against the interest rate charged.
By tweaking the precise conditions according to borrower’s preference, a mortgage broker can create a shortlist of potential lenders. Mortgage advisers commonly use sourcing systems from providers such as Iress, Mortgage Brain and Twenty7Tec to source the best mortgage products for their customers.
Mortgage Lender Criteria Comparison Tools
Criteria tools allow mortgage brokers to understand and compare the lending criteria of competing mortgage lenders. This can be critical in avoiding mortgage applications that are rejected without consideration for policy or procedural reasons. For example, an otherwise ideal mortgage product may be rendered unsuitable because the lender will not finance flats above commercial premises.
Knowledge Bank and Criteria Brain are popular criteria sourcing tools used by mortgage brokers.
Mortgage Rate Alert Systems
Some mortgage brokers now use specialist mortgage rate alert systems, such as Mortgage Metrics or Dashly, to make sure their clients never miss out on a better deal. These systems track mortgage rates daily and automatically flag if a lender reduces its rate after you’ve already applied. Your adviser can then quickly secure the lower rate on your behalf, potentially saving you money without you having to do anything. This is one of the key advantages of working with a broker: they proactively monitor the market for you. By contrast, if you go direct to a lender, it’s uncommon for them to contact you if a better rate becomes available after you’ve applied. With rate-alert technology, brokers can give you peace of mind that you’re always on the most competitive product available at the time, even if the market shifts during your application.
CRM Systems
Once the decision has been made to proceed with an application, customer relationship management (CRM) systems let the broker streamline the application process and minimise complexity for the borrower. CRM tools can assist in form filling, organise and store essential paperwork securely, allow e-signing and e-verification of documents, centralise communication between broker, borrower and mortgage lender, and let the borrower monitor their application. CRM systems can also help mortgage advisors to continue adding value for their clients long after a mortgage has been approved, by notifying the borrower of important upcoming events, such as the need to renew their mortgage insurance or the imminent end of mortgage product.
Brokers use all the tools above, together with other elements such as their market knowledge, and expertise navigating lender’s systems and completing mortgage application forms, to save their clients’ time, money and hassle. This can be especially important for borrowers with non-standard personal circumstances or financial situations, such as the self-employed, where the help of a suitably qualified professional can be vital. You can find the best-rated mortgage advisers for expert advice in our mortgage adviser directory.
