Freedom Finance launches Open Banking for second charge mortgages

However the firm did not reveal who the lenders were to Specialist Lending Solutions.

The announcement follows a Freedom Finance industry workshop, in partnership with AccountScore and Equifax,

This brought together large and challenger banks to discuss a common Open Banking goal, providing customers with better informed options while ensuring lenders offer clarity, and not just choice.

The service categorises transaction data to provide more detailed financial insights on customers and notifies personal finance providers with real-time changes in a customer’s circumstances that could alter their requirements or eligibility.

Freedom Finance’s Open Banking solution integrates into its lending platform, which the firm claims can speed up the customer journey time from approximately two days to five minutes.

However, it will continue to offer a manual application process with paper documents that can be completed over the phone with advisers.

The firm said that by bolstering loan applications with additional insights, alongside credit checks, it can achieve greater clarity on the options available for customers.

Third of customers chose Open Banking

Andrew Fisher, group managing director at Freedom Finance, said: “We enable our customers to use technology to its full potential, while guiding and educating throughout.

“Open Banking is a unique opportunity that allows borrowers to unlock their data to make the most of their money, and we’re currently seeing around a third of customers choosing to opt in.

“In a personal finance market crowded with options, it provides security and clarity for customers to help them make positive and well-informed choices.”

Emma Steeley, CEO for AccountScore said: “Our service has already powered the UK’s first live consumer Open Banking journey for HSBC and working with Freedom Finance to provide the first lending platform offering for both borrowers and lenders signals a positive change for new technology.

“Open Banking delivers better efficiency in the customer journey than previously possible, while also helping customers find the most relevant option when applying for either a loan, mortgage, or credit card.”

Freedom Finance said it will also include Open Banking to the unsecured loans journey from March onwards.