Developed by rent to own firm Keyzy, Afford.Mortgage builds on software used by the firm that was initially created to help its customers see what rent they could afford.
Mortgage brokers who referred clients to Keyzy asked the firm if they could access something similar to qualify and assess their pipeline of clients, so it was developed.
Simon Groll, founder of Keyzy, said: “We thought, why don’t we repackage our affordability assessments for mortgage brokers so that can qualify their pipeline, get a much better understanding about people who are applying for a mortgage, and spend more time helping them get the right products and the right advice?”
Digitising the fact find
Afford.Mortgage enables brokers to invite clients to do a rapid fact find and use that information to determine what mortgages they might be eligible for. It also alerts brokers to potential obstacles, such as if a client has spent money using cryptocurrency, which not all lenders accept.
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He said this could alleviate the issue of brokers spending time gathering documents, only to have an application rejected for something that could have been spotted sooner.
Afford.Mortgage is currently onboarding brokers for a one-month pilot period, and is being offered for free with the possibility of making the platform paid-for in the future.
Brokers can currently choose which lenders to take these clients to, but Groll said it would soon be possible to see live mortgage products from a data provider.
The service is considered to be an add-on to the existing advice process, with Groll saying: “We’re not trying to replace any kind of industry tool. This is just something to enhance the way brokers work today.
“If they’ve got nothing in place right now and they’re using Excel and email, this will be a great first tool for them to have.”
Clients do not always know the facts about their finances, Groll added, or may want to omit information to put the best foot forward.
“These hard facts that can’t really be disputed, it’s as accurate as you can imagine.
“It’s easier to do, so a broker spends less time collecting documentation, looking at physical or PDF documents to find the numbers they need,” said Groll.
Instead, the analysed data can be presented to an adviser, which shows how much a client should be able to afford on mortgage payments.
Groll said it was more straightforward for the broker compared to going back and forth collecting information, but noted that they would still need to gather some documents to submit an application to a lender.
“That’s why [we need to] replace the bank process, not replace the documents. This is just allowing brokers to use the benefits of open banking. We believe the future will look like this, but the banks and brokers haven’t caught up yet.
“The best way to predict the future is to make it happen yourself.”
Afford.Mortgage has former underwriter Andy Thompson on its team, who developed a lending proposition while at Kensington, and product manager Adam Purcell, who worked at Lloyds Banking Group for a decade, including across its digital mortgage business.
Groll said that combined with the experience of the Keyzy team, they all had an “understanding of how technological disruption could change the industry”.
Capturing clients early in the home buying journey
Groll said Afford.Mortgage could work in harmony with its recently launched home buying coach app, Klink, which helps people get mortgage-ready.
It takes a few minutes to onboard brokers to Afford.Mortgage using their Financial Conduct Authority (FCA) numbers, and they could invite clients to use the system with a referral code or email link.
Once a client is registered, they can create an account and choose to proceed with mortgage advice if they are ready to buy a home, and will be linked to the broker who originally referred them.
Groll said Keyzy spoke to a lot of people who wanted to buy a home, and the first questions often asked were: “What home can I buy? What budget do I have? Can I get a mortgage?”
He added that people were usually directed to go to a broker, which required an “hour-long phone call” and to “fill in this really long form”.
“Often people just stop at that point, because they’re not that serious, and they just want to find out [their options].
“A consumer can come to our platform, the same Afford.Mortgage platform, sign up and get an indication of what their score might be, and then get put in touch with the mortgage broker from there.
“All the brokers signed up with us get access to that pool of people,” he said.
