The new product will combine full details of a consumer’s credit commitments and a valuation of their property to decide whether they are in positive or negative equity.
James Taylor, head of PR at Experian said: “Previously lenders had to gather data from different databases, but with Equity Check, all the credit data will be in one system. Therefore the new process is much more effective and efficient for mortgage lenders.”
Mortgage brokers will not be able to use the new product as the company has restricted usage to lender customers only.
Taylor added: “All credit data is shared through Experian’s key systems, and only members of that system will be able to use the tool.”
Lenders will also be able to help assess the impact of house price changes and interest rate increases on customers’ equity positions using the product, said Experian
Nick Evans, head of customer management, Experian UK & Ireland said: “Equity Check has significant risk management benefits by providing another layer of insight into a customer’s overall financial position.”
He added: “This information will enable lenders to make even more informed lending decisions in the future.”
Andy Hammerton, head of press office at Platform, has backed the new product, calling it a “terrific tool” for mortgage lenders and creditors.
