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Large brokers put more focus on lender brands – research

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  • 15/05/2019
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Large brokers put more focus on lender brands – research
A lender’s brand is more likely to play an important role for large brokers when determining where to place a case than for small advice firms, according to the latest mortgage lender benchmark research from Smart Money People.

 

It found that lender brand was ranked as an important factor in choosing which lender to use by 39 per cent of brokerages which have at least 20 advisers.

Just 27 per cent of these firms suggested the lender’s brand was not important at all.

In contrast, smaller advice firms were much less likely to be swayed by a lender’s brand, with just one in four (26 per cent) suggesting it was an important consideration. A third of small brokers (32 per cent) said it was not important at all.

Intermediaries were also asked how they would describe each lender’s personality if they were to meet them at a party. One broker described a lifetime lender as a “vicar in drag”, while a specialist lender was characterised as “aloof, ambitious, careless”.

Michael Fotis, founder of Smart Money People, noted that lenders may wonder whether their brand really made a difference to the business they received from intermediaries.

Our analysis suggests that while, for many, it really doesn’t matter all that much, brokers at larger firms are much more influenced by brand than those at smaller firms,” he added.

Nick Sherratt, managing director of Mojo Mortgages, said that brand can be important to borrowers, particularly when it comes to trust.

He continued: “In a market that can be bewildering in terms of competition, rational choice can be difficult and brands often represent reassurance, consistency and status.

“Lesser known brands like The Mortgage Works are always better received by customers once we explain that they are a brand of Nationwide Building Society. This has a disarming effect and allows our mortgage experts to get into the fundamentals of a mortgage product much more effectively.”

 

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