Response to mortgage approval data – Tink

by | Nov 29, 2022

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Written by Tasha Chouhan, UK & IE Banking and Lending Director at Tink 

New data released today from the Bank of England (BoE) has revealed that mortgage approval rates have fallen again. 

But while the mortgage sector may be starting to stabilise after the turmoil following September’s mini-budget, consumers are continuing to grapple with ever more challenging economic conditions as mortgage rates and energy bills remain stubbornly sky high. In this climate, it is critical that lenders prioritise consumers’ financial needs and do all they can to support and protect them.

For this to happen, traditional lending processes need a radical overhaul. Tink’s research finds that 50% of lenders are still using outdated and limited credit scoring models which don’t consider transaction data from consumers’ bank accounts – potentially excluding millions of people who can afford credit. This is unacceptable in the current economic climate and the sooner this is recognised and resolved, the better the outcome will be for both lenders and consumers.


With the UK staring down the barrel of the longest recession since records began, we need to move away from outdated models to unlock fairer and more inclusive affordability checks that support consumers and businesses in the months ahead. This is where open banking can help – providing lenders with a 360 degree view of people’s finances to ensure anyone that is entitled to credit, a loan or a mortgage, is able to secure one.

In the same vein, it also allows lenders to protect themselves against risk through more accurate credit assessments, as well as providing visibility of those who are vulnerable and need support.

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