Money Dashboard is using the Financial Conduct Authority’s (FCA) ‘sandbox’ to test a mortgage tool that instantly maps consumers to lenders based on affordability assessments.
Money Dashboard is a personal finance software platform that can be accessed via an app or web portal. Its new tool, TrueView, will become part of the app and aim to create a digital mortgage journey.
Money Dashboard will be testing its TrueView in the sandbox ̶ which allows businesses to test products in a live, supervised environment with restricted authorisation and individual guidance.
The tool will offer an instant assessment of a consumer’s ability to afford a mortgage, by aggregating and organising financial transactions from its users’ online accounts and map them to mortgage lenders’ criteria.
Consumers can use the tool to both plan for and improve their affordability, and when they are ready, to use the assessment and data to apply for a mortgage.
Money Dashboard said the verified data can be directly accepted by brokers and lenders to support a digital mortgage application, making applications digital, simple and transparent.
It said applying for a mortgage is still a painfully offline, paper-based process. According to research, from identity data specialist GBG, an estimated 65 percent of consumers no longer receive paper bank statements and 42 percent do not hold paper copies of utility bills.
Steve Tigar, chief executive of Money Dashboard, said: “Our consumers’ top financial goal is to get on the property ladder but they find the prospect of getting a mortgage incredibly daunting.
“The complexity of information gathering means they put off seeking professional advice until the very last moment, which is far from ideal given that it’s the most important financial decision that most people will ever make.”
The rise of automated advice and digital mortgage channels will be debated at Credit Strategy’s Mortgage Conference, sponsored by MortgageGym, taking place in London this October.