FirstMortgage Services (FMS) is to unveil an online credit assessment service in the autumn which will enable lenders to provide conditional mortgage offers to prospective borrowers, via intermediaries or direct, within four minutes.
The system does not require the lender or intermediary to change the systems they already have in place. Once intermediaries have selected the most appropriate deal for their client from whichever sourcing system they use, Client Assessment Service (CAS) will allow them to transfer the data to the lender, in a format the lender requires, for automated credit scoring, returning a guaranteed lending decision within minutes.
To obtain a decision, the system requires the minimum level of information about the borrower and their financial circumstances. Proof of ID will only be requested after the conditional offer has been made and any further documentation required by the lender will be noted on the offer letter.
The system also allows the lender to tailor the scoring criteria to align it with its established approach.
The system will provide benefits to the lender, intermediary and borrower alike, said Tony Ballantyne, FMS managing director. “We all know that in reality agreements in principle are valueless. This system provides actual conditional offers which will cut out the uncertainty and delay for intermediaries and their clients. Clients will know they have got the money almost immediately, intermediaries will be able to close deals more quickly and lenders will know that the applications they are receiving are genuine.” He added that lenders who sign up to the system will also see significant cost savings.
The system costs between £7 and £40 per application depending on the specific requirements of the lender.
FMS has approached the top 45 lenders with an aim to gain at least 7.5% of the market. Two major lenders have already signed up to the system.
FMS is a new company formed out of FirstMortgage Group, a centralised lender which ceased lending at the end of January.