Today, approximately 70% of UK households own their own home* and equity status has become a critical indicator of credit-worthiness. A clear understanding of customers’ equity positions enables banks and other credit providers to gauge the suitability of customers for offering credit.
What is Equity Check
Equity Check gives you a quick and clear understanding of any customer’s equity position. Whether you’re trying to evaluate the risk of offering a new customer credit or assessing the collectable assets of an existing borrower, Equity Check gives you accurate and up to date equity information so you can make informed decisions that minimise your business risk and provide accurate Loan To Value calculations.
Equity Check provides a snapshot of an individual’s net worth (excluding savings and investments), identifying positive and negative equity positions, and revealing how much equity an individual holds in a property, either as an amount or as a percentage of total value.
As a low-cost, high volume alternative to traditional property valuation methods, Equity Check is an invaluable tool for any unsecured CAIS lender wishing to make smarter lending decisions.
Why Equity Check
Compared to many other valuation services Equity Check gives you:
More customer data knowledge
Having an insight into your customers’ equity status is critical to understanding your customer’s financial position and managing your risks
Receive high-accuracy property valuations at a fraction of the cost of similar services
Faster equity valuation results
Whether delivered as a one-off batch run or a regular refresh, valuation updates are available quickly once the initial valuation has been established
More data accuracy
Experian uses many reliable sources (eg Rightmove, Surveyors and Land Registry data) and market-leading modelling to ensure the accuracy of valuation. We also hold more credit account performance and valuation data than any other organisation.
Equity Check helps to demonstrate compliance with pre-action protocols and fair customer management practices.
Better Loan to Value calculations and other benefits of Equity Check
From processing credit applications through to customer management and debt collection, Equity Check is invaluable for minimising risk at every stage in the customer credit lifecycle:
- Refer new loan requests from existing customers with low equity
- Cross-match customer equity with credit scores for a holistic view of customer credit risk.
• Provide a risk assessment for screening of further lending criteria as a score or band
• Help to control lending and credit risk exposure
• Create retrospective valuations to help predict future credit behaviours
• Screen suitability of customers for cross-selling other finance products
• Adhere to Office of Fair Trading (OFT) guidelines for Responsible Lending.
• Help to drive early debt collections strategies for debt portfolios and understand likelihood of default, including risk assessments, charging orders and screening to establish priority cases.