Coventry BS will be able to run cases through the platform to test scenarios and record the affordability results for all lenders. The mutual said this will help it ensure its position in the market is consistent with its appetite for risk.
Lewis Lenssen (pictured), managing director of Mortgage Broker Tools, said that while its primary aim with the affordability software was to give intermediaries accurate answers over how much clients could borrow, it realised the platform could also help lenders develop their own affordability calculations.
He added that the firm was in discussions with other lenders over the development of a lender-centric affordability platform, suggesting this would ultimately benefit brokers and their clients as it would “enable the development of affordability models that are targeted more directly for the specific needs of individuals”.
A spokesperson for Coventry Building Society said that up to now lenders have had to rely on “ad-hoc research” to understand their position in the market, but the greater information offered would help lenders to “respond appropriately” to their position in the market.
“This is good news for lenders, good news for brokers, but mainly it’s good news for borrowers,” the spokesman concluded.