Why automation is critical for Consumer Duty compliance

But that’s what can happen when property risks that have the potential to derail the transaction are only uncovered in the latter stage of the mortgage journey.

Being forced to pull out of a transaction not only means losing precious time and money, but also chains break down disrupting other movers and first-time buyers face disappointment over losing a first home; for renters this can be even more painful if they have given notice to move out.

Alternatively, emotionally invested buyers could make a difficult decision to proceed even though they face financial risks in the future.

Delivering on Consumer Duty principles

It is a situation that can and should be avoided if the spirit of Consumer Duty regulation is embedded into the mortgage decision process.

Delivering good outcomes, putting customers in a position where they can make informed decisions and designing products and services that put the customer first are the principles at the heart of Consumer Duty.

Lenders can deliver on those principles by adopting greater levels of automation in the mortgage journey by incorporating more trusted data at the point of decision making.

By doing so they can spot property risks such as undesirable leasehold terms and the risk of subsidence much earlier in the mortgage process.

This allows lenders not only to take appropriate action for out of policy properties, it ensures borrowers understand the risks associated with the property they’re buying so that they can make informed decisions.

That’s certainly a strong argument for undertaking more data driven decisions.

To find out more about how your business can benefit from greater levels of automation contact Hometrack.