Mortgage Metrics, a service to assist mortgage brokers in keeping up to date with rate reductions, has been launched.
Mortgage Metrics is a “unique” system which alerts brokers when mortgage rates they have secured for their clients are reduced.
How it works
By tracking falling mortgage rates between application and completion, the service is able to solve a problem which did not exist for brokers during the era of ultra-low interest rates.
The system and its process was explained by Mortgage Metrics co-founder, Lee Flavin.
Flavin stated: “If you’ve got somebody who’s done a remortgage or a purchase for somebody and are months away from that completing, the system tracks the rate movements from lenders.
“If those rates then reduce, then an alert is triggered to the mortgage broker and they are able to go back into the system and apply the new and lower rates for their clients.
“It works really well in a falling rate environment like the one we’re in at the moment because lenders are changing their product so frequently.”
Flavin added that Mortgage Metrics saves brokers from having to rely exclusively on lender communications and resources.
Founding
Flavin additionally explained that Mortgage Metrics was founded following the "mini" Budget last year, after which mortgage rates increased “pretty much overnight and remained in that position for some time".
He explained he had built a manual process that tracked the movement of mortgage rates for his clients to ensure they would “complete on the most competitive rates available to them".
He added that, “we realised we weren’t alone in this through speaking to other mortgage brokers, who had also kind of adopted a very manual and time consuming process.
“We saw the opportunity to build something which we thought would be well received by mortgage brokers across the country, and that’s exactly what happened.”
Since its launch on August 29, Mortgage Metrics has processed over 1,000 rate reductions.
tom.dunstan@ft.com
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