The Intermediary –- May 2026 - Flipbook - Page 65
S E C O N D C H A RG E
Opinion
Leave underwriting
with the humans
I
think we can all agree that
– whether or not you have
fully bought into the ultimate
triumph of technology over
human experience – in an
underwriting and sourcing
context, technology is definitely
here to stay.
However, its role must be
understood not in terms of ultimate
domination but as a partnership with
human operators.
We have already seen what
happened when lenders place an
overreliance on credit score and
algorithm heavy decisioning which
results in many borrowing refugees
looking for finance outside the high
street. Is it any wonder that the
specialist lending sector has grown to
its current level?
As we know the thriving specialist
lending market has shown that the
vacuum did not take long to be filled.
Those lenders that have recognised the
rigidity of the technology-led template
for mortgage customer assessment
have made sure that greater reliance
is placed on developing the skills
and experience of their human
underwriters and provide a much
needed alternative for the growing
numbers of applicants, who find
themselves excluded from the
high street.
In reality, though, how many people
are upset or feel they are geing a
second class deal if they do not qualify
for a mortgage from a high street
name that they have heard of? Are we
really of a mindset that having a deal
from a high street lender is somehow
superior, just because we recognise
them from their advertising or
their longevity?
Also, the proliferation of sourcing
technology not just in first charge but
also second charge, commercial and
even bridging brings about a different
set of challenges for today’s broker.
With many mainstream lenders
commied to underwriting by
algorithm, it is perhaps unfair to
expect that sourcing engines can reach
a level of sophistication that would be
required to be sure that a deal will be
acceptable. They are more, rather than
less, likely to fail to provide the right
answers when no maer how well
the criteria are programmed, none of
them has access to the exact algorithm
used to generate a yes, no or maybe.
Complex situations
In the second charge market, the
situation is different. Unlike first
mortgages, a second charge can be
used for more varied needs such as
consolidation or repaying a tax bill
etcetera, so further checks and seeking
greater understanding of clients’
current situation is paramount.
While Equifinance has invested
heavily in a new broker portal which
fully automates parts of the process,
we ensure that our well trained
Technology can process cases, but humans should still write the outcome
LAURA THOMAS
is regional sales manager
at Equifinance
human underwriters are free to
concentrate on beer understanding
our clients’ needs and marrying those
against their ability to service our
loans. In turn that approach then leads
to beer customer outcomes.
We believe that the computer
heavy approach leads to a box
ticking exercise which fails to take
into account that customers are not
homogenous, and their circumstances
are rarely the same.
For first-time or occasional users
of second charge lending, I believe
there is still no substitute for the
experience, knowledge and strong
relationships that are the hallmark
of the human talent available to
intermediaries among the specialist
packager community.
However, technology is
unquestionably a valuable tool
when used in partnership with a
human underwriter.
Unless the lender in question has
set up an underwriting factory where
volumes require a production line
approach guided by a template of their
ideal customer, give me a human
interface to provide the necessary
oversight and understanding vital for
final decisions!
Looking forward, until technology
can be fused directly with a human
being into an underwriting cyborg
– a mortgage enabler rather than
a terminator – we will continue to
favour flesh and blood underwriters
over credit scored, algorithm
led technology. ●
May 2026 | The Intermediary
63
