There are some lenders who like to have a bit of a moan behind closed doors about mortgage intermediaries. The common complaint is – and these are their words, not mine – mortgage brokers are stuck in a rut, still trading like pre-regulation brokers, with little inclination to drag themselves firmly into the 21st century.
There are also grumblings about their demands. They are so far removed from the real workings of the market, particularly during these troubled times, that they are unable to understand reasonably the ins and outs of being a provider of mortgage products.
However, the latest research from GE Money has shown brokers do understand the realities of the market. In fact, two thirds of brokers who responded to the survey consider one week a fair amount of notice to give when products have to be pulled. This is despite a staggering one in four deals per broker being affected by the current credit crunch, and apparently one in five claim deals are not being honoured after a decision in principle.
The understanding from brokers that products will inevitably be pulled, and that they feel one week’s notice ahead of product withdrawals is reasonable shows a very sympathetic broker industry. The patience and support displayed by intermediaries during today’s sub-prime crisis has been commendable. The next time I hear a lender complain about brokers, I will be happy to set them straight.
Pause for applause
It is not often that I congratulate industry figures for winning awards. After all, this industry is saturated with award ceremonies. William Hague MP made a killing last year on the financial services awards circuit, and it is rumoured that one comedian was offered £20,000 to appear at an industry do. Not a bad fee for a few hours’ work.
However, I am happy to make an exception this week. Intermediary lenders Edeus and GMAC-RFC both won awards for marketing effectiveness at the Financial Services Forum (FSF) Awards last week.
Edeus won in the category for the most effective new product, service or innovation, with Alan Cleary, managing director, giving Sue Clarke and Elaine Forthe a special mention for their work on the brand. GMAC won in the category for best integrated campaign, based on its point-of-sale offers communication.
In my opinion, the wins represented a great coup for the intermediary mortgage market. Most of the FSF award winners come predominantly from the investment and high street markets, and it is highly unusual for intermediary lenders to secure such emphatic plaudits.
With the likes of Gartmore, Morley Fund Management and Scottish Widows always performing well at these awards, I believe last week’s wins for these lenders is a huge step for the industry overall. Particularly in this volatile climate, it is admirable our intermediary sector is being recognised for its excellence rather than being pointed out for its failures. n
