Experian unveiled its eligibility checker after it uncovered research that 24% of homeowners found the mortgage process the most difficult part of buying their home – more so even than raising a deposit.
A third of buyers admitted the process had proved stressful because they had underestimated the costs of moving after they had secured their deposit.
The price of legal fees came as a shock to the largest proportion of those questioned, but many buyers had also misjudged the cost of surveys, estate agents and stamp duty.
But one of the biggest challenges proved to getting the best mortgage deal. Indeed, 74% of buyers said they didn’t check their credit report before applying, which meant they had been left with limited – and less expensive – mortgages to choose from.
Understanding options
Now, Experian hopes its eligibility tool, which went through a successful pilot last year, will help potential buyers better understand their options and guide them through the process.
It will inform them of which mortgages they are likely to be accepted for and how much they could borrow based on lenders’ criteria.
What’s more, the service allows buyers to conduct a ‘soft search’ which does not affect your credit score and it will also give potential buyers a better understanding of their options which will help when speaking to a mortgage broker. Experian said it was set to ‘revolutionise’ the mortgage journey.
Amir Goshtai, managing director of Experian Marketplace & Affinity, said getting a mortgage was one of the biggest financial commitments many consumers would make in their lifetime and its research shows it can be overwhelming.
He added: “We have become used to checking our eligibility for products like credit cards and loans for some time now, and there’s no reason the service shouldn’t be available in the mortgage market too.
Confidence
“Making sure consumers are well informed about their options will give them confidence when speaking to a mortgage broker. Experian’s eligibility tool provides straightforward answers allowing buyers to feel prepared without affecting their credit score.”
As well as using the tool, buyers can also try Experian’s mortgage quiz to which will help buyers learn more about the homebuying journey.
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It seems likely that continued FinTech development will eventually result in a consolidation of brokerage operations under giant companies, eliminating client choice and reducing specialisation. It will become one-size fits-all approach and remove the person from the process. Of course, I am wary of this because it will possibly eliminate my job but im also wary of this because this type of thing is the opposite of an advised process and instead seems to meet the definition of execution only