In a video interview with Mortgage Solutions group editor Victoria Hartley, Bilgrami said: “In terms of market dominance, in the past perhaps, people have talked about this kind of infrastructure bringing distribution. This is absolutely not about distribution.”
He added: “Let’s be clear, the lenders are going to get their distribution, regardless of whether or not this infrastructure exists. The point of this is about efficiencies. Therefore, the way we go about charging for it is not a distribution price. We’re not going to price this based on the level of traffic or throughput or value of mortgages. There is a flat fee, dependent on size of lender and, at least to begin with, it is free for brokers or technology providers to connect through this. There may be a small de minimis fee in the longer term in order to use this,” he added.
The buyout deal confirmed on 2 March brought Santander-owned Mortgage Engine and its application integrations with top lenders NatWest and Santander under Mortgage Brain ownership, with Submissions Brain users expected to be able to access these new lenders by Q2-end.
The deal hands Submissions Brain ‘about three-quarters’ of the mortgage lending market and Mortgage Engine users will potentially also be able to access some of the nine Submissions Brain lenders, including Nationwide, Halifax and Coventry BS within the same timescale.
Industry standardisation
Managing director of Mortgage Engine, Cloe Atkinson, said Santander and Natwest are already using a common question set on the Mortgage Engine software which has no front-end user interface and was asked how soon this could be extended to other lenders through Submissions Brain.
Atkinson said: “Neil (Wyatt) and I have been having really positive lender conversations.”
She said: “Six of the lender owners of Mortgage Brain are really onboard with the principals.
“How we capture that data is really important, that standardisation. What I’m not asking lenders to do is ask exactly the same question but if we capture data at this lowest form then we can transform that data and give it to a lender in the way they want to receive it.”
Mortgage Brain is owned by Barclays, Lloyds, Nationwide, RBS, Santander and Virgin Money.
Industry usage fees
On usage fees for other technology providers, Bilgrami said: “Not necessarily the tech providers but perhaps the end users in order to benefit from the efficiencies. There may be a small charge but this is longer term if it’s a success.”
“What makes this unique is that it drives not just our own front-end screens but also others. We’re willing to open this up to anyone who wants to use it on an equal usage basis. When you talk about stifling competition, quite the converse. It increases the options available to those wanting to connect up to lenders. I’d argue that this is a more efficient way in order for them to do so in the future.”
Watch the interview [19.35] in full below.
