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Mojo Mortgages unveils app-based eligibility scoring service for first-timers
Mojo Mortgages has outlined plans “to bring transparency and openness to the mortgage market” though a new app-based affordability scoring service for first-time buyers.
The online broker has partnered with Credit Kudos taking the credit bureau’s open banking data to develop MortgageScore, which is scheduled to launch in early 2020.
The individual mortgage eligibility rating would be an evolution of a typical credit score combining credit and employment history, spending habits, deposit saved and income.
Mojo said 25 per cent of first-time buyers enquiring through its website were declined for a mortgage due to lenders’ affordability criteria, but often they were given no clear explanation why.
The app aimed to “provide customers with the insight they need to get mortgage ready,” it said. It would show how the score is calculated, where customers may be strong or weak and provide guidance on how to improve.
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“We’ll be the first online broker to integrate open banking data successfully. This will enable more streamlined and accurate methods of calculating affordability,” said Richard Hayes, chief executive and founder at Mojo Mortgages (pictured, left).
“It will support real-time decisions, reduce delays for customers and, ultimately, reduce lenders’ cost-of-service,” Hayes added.
Freddy Kelly, chief executive and co-founder at Credit Kudos, (right) said: “We exist to make it easier and fairer for people to access credit by providing lenders with accurate, real-time information on a person’s credit worthiness.”
“We’re delighted to partner with Mojo to help its mortgage lenders to make better, fairer credit decisions and to provide customers with actionable insights to improve their chances,” he added.