When TSB entered the market at the start of last year with its service-led proposition, it changed the dynamics of the mortgage market. The launch of the lender into the intermediary market acted as a real disrupter, setting new standards for existing lenders to either try to match or face losing market share. This became even more the case as TSB proved it was more than just talk and actually achieved the standards they came in shouting about.
At the start of this year we are faced with a raft of other new lenders about to enter the market. HSBC dipped its toe into the broker market last year, while both Tesco and Sainsbury’s are rumoured to be looking at the intermediary market. In addition, there are a number of yet-to-be-announced lenders looking to launch.
These new lenders are disruptive in more than just new rates, they tend to have state-of-the-art IT systems with slicker online capability and quicker turn-around times. Sometimes these systems will include apps or transparent systems that allow brokers to track how their case is doing, every step of the way.
What’s more, the new lenders look to the existing market to attract the best and brightest staff. These staff bring with them their knowledge on how things are done at existing lenders and what they would like to better.
As a result, we have seen a lot of change with people moving to new jobs. This will keep all lenders on their toes. Increased competition leaves no room for complacency in the lender market as there are more firms fighting for market share.
All of which is likely to be good news for both brokers and their clients. With mortgage turnaround times reputed to be 40 to 50 days for some buy-to-let cases, any new lenders that can substantially improve on these times will quickly find themselves attracting a whole host of new broker business.
