PRODUCT UPDATES
Innovation highlights from Mambu #6
Mortgages edition
Category
Product updates
Publish date
17 Jun 2024
Author
Sara Taify
We are thrilled to announce the latest enhancements to our retail mortgage product, designed to offer more flexibility and value for lenders.
Mambu's core banking platform already offers pre-built product configurations to use as-is or build on to create a range of mortgage solutions. We are continuously enhancing our offering, extending what is currently possible, incorporating market best practices and making our product more customisable to fit lenders' needs.
Whether you’re a bank, building society, credit union, or specialist mortgage lender, with Mambu, you can launch products quickly, offer great customer experiences, and adapt to new opportunities. Here’s a look at our new and enhanced capabilities.
“To gain and maintain market share, mortgage lenders need flexible and innovative solutions to launch products quickly, offer great customer experiences, and adapt to new opportunities. Mambu can provide just that, and we’re making giant strides to supercharge our core banking platform even further so that our customers can grow with us and stay ahead in this dynamic market.”
- Rohit Bhadauria, Product Director, Financial Services
New use case
Interest-only equal instalments
These mortgages offer several benefits to lenders including attracting property investors looking for buy-to-let mortgages.
With Mambu, lenders can tailor their product precisely to their clients' needs, expanding their customer base and diversifying their portfolio.
With fixed monthly payments, borrowers pay only the interest each month for a specified period. This structure facilitates better cash flow management and maximises returns over the loan term.
Streamlined repayments
Custom threshold for base rate changes
Mambu now updates the next instalment amount for dynamic loans if rate changes in the underlying index rate are outside of a predefined threshold, if not, the following instalment would be adjusted.
This feature ensures that borrowers have sufficient time to notify customers whose instalments would be impacted and ensures borrowers benefit promptly from rate reductions, and do not end up with an interest shortfall when rates go up.
Enhanced flexibility
Custom Early Repayment Charges (ERC)
Leveraging the power of Mambu Functions, lenders can define their own logic to calculate ERCs and bind it to Mambu’s lending engine, successfully extending the Mambu Cloud Banking Platform to fit their needs.
Mortgage lenders can impose fees for early loan repayments, particularly during periods of reduced fixed interest rates ensuring they can safeguard against potential financial losses.
See Mambu in action
Join our monthly live demo for a behind the scene look at our cloud banking platform.
Better processing
Custom overpayment threshold
By setting a custom overpayment threshold based on days before an instalment date, our system determines whether the next instalment or the subsequent one is adjusted, ensuring smoother payment and collection management.
This enhancement is a significant improvement in how we manage extra payments on mortgages which brings more efficiency, aligns with industry best practices and helps lenders fulfil their consumer duty obligations.
Flexible repayments
Enhanced payment holidays
The updated payment holiday functionality, applicable for both interest-only and capital repayment mortgages, allows for interest accrued during the holiday period to be evenly distributed over the remaining instalments, without extending the loan duration.
Flexible repayments
Expanded schedule recalculation options
We’re introducing 'Reduce Amount per Instalment' (RAI) and 'Increase Last Instalment' (ILI) for mortgages calculated using both simple and compound interest methods.
These capabilities will support more tailored repayment strategies, giving mortgage lenders more flexibility to support their clients with financial planning.
We are delivering real-life results for banks and lenders alike
Many new and established banks, building societies and specialised lenders have opted to run on Mambu’s platform with world-class partners on top supporting the full end-to-end loan life cycle from loan origination to collections. Read more about their stories below or contact us to learn more.
