When choosing a bank what things do you consider? The financial stability of the institution perhaps? Its history and standing in the market? Maybe you’re most interested in the benefits this bank can offer you in comparison to its competitors, or maybe its product range is what you prioritise. The chances are you’re not looking at how flash its advertising campaign is or how catchy its strap line may be.
When it comes to choosing a mortgage club however, it is easy for brokers to be swayed by the latter examples. Indeed, flashy introductory offers or gimmicky campaigns have a tendency to pull in the attention of intermediaries.
But why are brokers not putting as much due diligence into finding the best place for their business as they do when looking for a home for their cash? After all, attractive introductory deals expire very quickly and once the novelty wears of gimmicky campaigns lose their appeal.
So what should brokers be looking for? Start by looking at the club’s standing in the market. How long has the brand been around for? If the club itself does not have history, ensure the team behind it are experienced and know what they are doing. New clubs with dynamic young management teams may say all the right things but do they really understand your business and this market?
Check the panel. An extensive panel will give you the most choice so make sure you give due consideration to who the club has signed up. Look not just for big name institutions but specialist lenders too. Think about your clients over the last year or so and deduce which type of lenders you have used the most. Does this club’s panel suit?
Seek reviews. Other brokers will be more than happy to discuss their experiences, good and bad, so ask your peers their opinions. If you don’t come into contact with fellow brokers much in your day to day working life, attend road shows and networking events and use these as a way to meet like-minded intermediaries and pick their brains.
Additional extras
Think about additional extras. No, I don’t mean freebies or gimmicks. I mean really consider what benefits a club could offer that would help take your business forward – compliance assistance or technology support for example. Compliance has always been an essential part of any business, since M Day, but with the MMR rules now in play and the EU Mortgage Credit Directive on the horizon, it’s more important than ever to ensure you have your compliance in order. If a club can make this easier for you that could be a weight off your shoulders.
Consider the communication channels at the club. How accessible are the senior management team and what communication platforms are available to you? Do these fit with your needs?
What support services are on offer? Each club’s offering will differ and this includes the kind of support and help they’ll be willing to provide.
Finally, and perhaps most importantly, speak to the club you’re considering. You are perfectly entitled to ask as many questions as you need to ensure you feel comfortable with your choice. Make a list of all the things you want to know before contacting them and if you are still unsure after your initial conversation ask to speak to the team again. If the club is a genuinely good option it will be only too happy to address any of your concerns.
