MBT launches predictive mortgage modelling tool for lenders

MBT launches predictive mortgage modelling tool for lenders

Mortgage Broker Tools is set to launch a predictive mortgage modelling tool to help lenders better manage mortgage deals in response to client demand.

The tool, known as the MBT ‘Sandbox’, uses the firm’s existing data resources to provide lenders with real time insights that will allow them to make quicker decisions about mortgage deals.

According to MBT, the tool is able to accurately predict application volumes, measure the impact of changes to rates, fees and incentives, and provide comparison to competitor products.

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In the past six months, mortgage lenders have been forced to act swiftly in response to Bank of England base rate rises and wider economic uncertainty.

Following September’s “mini” Budget, UK markets spiralled into turmoil after a range of unfunded tax cuts were introduced.

In the days that followed, mortgage lenders pulled hundreds of mortgage products from the market because soaring swap rates meant they were unable to price them.

Since then, some stability has returned to the market, but amid cost of living concerns and a further slowdown in UK growth this year lenders remain vigilant.

MBT chief executive, Tanya Toumadj said the firm’s new tool will allow lenders to juggle the “conflicting objectives” of retaining existing members, competitiveness, and profitability while at the same time “treating the customer fairly and meeting regulatory requirements”.

“Lenders have traditionally used price as a lever to control volume and margin. However, this is outdated and unsophisticated – as it doesn’t take into consideration how often they are eligible and affordable against their peers,” Toumadj said. 

She added: “This can often result in a lender quickly having to pull products because it’s overloaded its service capability.”

Toumadj explained that over the past year the firm has been testing MBT Sandbox with a handful of partners.

In her view, the tool will enable lenders to reduce time to market for new product developments and will allow them to launch products with greater confidence about how they will perform.