London startup aims to take mortgages paper-free

Josh Hall's picture
by Josh Hall

A London startup is using Open Banking to remove all paper-based background checks from the mortgage application process.

MortgageGym are preparing to launch the new technology through their ‘robo-advisor’ facility that they say allows UK homebuyers to complete an entire mortgage application within 15 minutes.

The technology uses Open Banking to analyse borrowers’ spending patterns directly from their bank and reference them against the credit file held at Experian.

MortgageGym says it then runs the application past the scorecards of 65 per cent of the top 20 mortgage lenders in the UK, returning only deals that the borrower can afford.

The technology analyses a number of data points through Open Banking to enable it to return deals. These include both regular and irregular income, necessary committed expenditure such as rent or existing mortgage payments, non-necessary committed expenditure such as mobile phone contracts, and lifestyle expenditure.

Commenting on the launch, MortgageGym co-founder John Ingram said: “We are essentially pioneering the use of Open Banking data in the mortgage sector in a highly practical way. We are the only digital mortgage platform that has bank-by-bank eligibility, credit score insights and Open Banking, which will be the most effective way of assessing mortgage eligibility and affordability in the UK and revolutionise the mortgage sector.”

He added: “Who wants to explain to their mortgage broker why they spent a lot on the High Street in one particular month, followed by eating out more than average the next? Our categorisation engine will be able to tell that an engagement ring is a non-recurring discretionary expenditure and, even though the ensuing celebrations may have been prolonged, they were not on-going throughout the year.”

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