The importance of online reviews – Rushton

The importance of online reviews – Rushton

I like trying new places and, let’s be honest, it’s quite fun doing the research and looking at different destinations, hotels, and restaurants. For most of the weekend, I was on various online websites assessing feedback, reading reviews and honing my options accordingly. 

Now, I know I work for a business that provides online reviews solely for the financial services sector, but it’s clear they shape our buying decisions across almost all parts of our lives. In fact, our research shows that 84 per cent of customers trust reviews from other customers*. Therefore, in this article, I’ll give four key reasons why online reviews matter. 

 

Influencing purchasing decisions 

Most customers read reviews before making a purchase or using a service. And our research found that 69 per cent of customers are likely to change their mind after reading reviews*. I know I did with one particular hotel this weekend. This demonstrates the importance of reviews and having a strong online reputation. 

 

Providing valuable feedback 

Online reviews give companies feedback from customers. Positive reviews show what they’re doing well, while negative reviews show areas for improvement. This feedback helps them to make changes and improve products, services and customer experience. 

 

Building brand awareness 

Online reviews can help companies become more well-known, boost visibility and attract new customers. When customers leave reviews on platforms like Smart Money People, they showcase the company to others. Responding to reviews also helps companies improve their image and build stronger customer relationships.

 

Addressing customer concerns 

When a customer leaves a negative review, it’s essential for companies to respond quickly. This shows that they value their customers and want to learn and get better. Companies can improve their service and increase customer loyalty by addressing negative reviews and resolving issues. At Smart Money People, for example, we notify companies when a customer leaves a review, so they can respond quickly. 

From building trust and credibility to influencing purchase decisions and providing valuable feedback, the importance of reviews is clear to see. Companies should manage and respond to reviews, positive and negative, to maintain a strong online reputation and attract and retain customers. 

 

*Smart Money People research, 2022 

Nearly 84 per cent of brokers say BDMs play vital role

Nearly 84 per cent of brokers say BDMs play vital role

Smart Money People’s H2 2023 Mortgage Lender Benchmark, which collated views 790 mortgage brokers, providing 3,666 individual pieces of feedback on 105 lenders, found that only 5.5 per cent disagreed or strongly disagreed and the rest were unsure.

The report continued that nearly a third said they typically first hear about a lender and what they offer from BDMs, with 35 per cent pointing to product sourcing.

Around 37 per cent said BDMs were the most valuable form of support service to serve clients effectively, scoring higher than dedicated phone lines, training programs or webinars and live chat.

Approximately 43 per cent of brokers were happy with BDM support, with over a third saying that lenders did not provide enough BDM support and the rest were unsure.

A topic that frequently came up was the move from in-person BDMs to telephone-based BDMs, with many saying that while they were comfortable with the change it did bring up problems with availability and accessibility on the lack of in-person support.

Jacqueline Dewey, CEO of Smart Money People, said: “It’s clear that brokers still clearly value the role of BDMs and although they understand the need for lenders to evolve, moving too quickly to a hybrid approach is a concern and can damage that lender’s relationship with its brokers.

“Lenders who can excel in providing superior BDM support with BDMs who have good case knowledge, along with being readily available and accessible will stand out from the crowd.”

The previous benchmark report from Smart Money People showed that brokers’ satisfaction with lenders staid high at 82.9 per cent, close to a record high, possibly indicating that lenders were coping well with market uncertainty and rising rates.

This is a recovery from the report at the halfway mark last year when broker satisfaction dropped to the lowest level ever recorded at 79.3 per cent.

Mortgage broker satisfaction with lenders stays high in H2 – Smart Money People

Mortgage broker satisfaction with lenders stays high in H2 – Smart Money People

The Smart Money People’s Mortgage Lender Benchmark suggested that the stable sentiment hinted at lenders coping well with market uncertainty and rising rates. 

Brokers were most satisfied with the performance of building societies, as they were top rated among the 790 advisers polled. Respondents gave mutuals a score of 84.7 per cent, a drop of one per cent on last year. 

Contentment with specialist lenders dropped 2.4 per cent to 79.6 per cent, while this improved by 3.4 per cent for lifetime lenders with a score of 83.6 per cent in H2. 

For the period, Atom Bank was named the best bank by mortgage advisers and Coventry Building Society was cited as the best mutual. 

Canada Life topped the table as the best lifetime mortgage provider while Metro Bank was best rated for buy to let. Interbay and Landbay were joint top for specialist lending. 

Building societies were most commended for their products and lending, receiving a score of 81.6 per cent compared to 74.7 per cent in H1. Specialist lenders were highly rated for their people. 

When it came to the mortgage process, specialist lenders and banks received the least positive scores at 58.1 per cent and 57.7 per cent respectively. 

Jacqueline Dewey, CEO of Smart Money People, said: “Despite volatility and pressures across all aspects of the mortgage process continuing into the second half of the year, the results in our eleventh edition of the Mortgage Lender Benchmark are encouraging.  

“Amidst a backdrop of challenging market conditions, lenders have continued to deliver a great service and experience to brokers and their customers, with just a small dip in the record overall satisfaction scores seen in H1 2023. With recent market talk of rate rises potentially coming to an end, it’ll be interesting to see how this continues into next year.” 

Communication and comfort crucial for cordial lender/broker relations – Dewey

Communication and comfort crucial for cordial lender/broker relations –  Dewey

But when you take a step back and look at the broader picture, beyond the latest difficulties, the relationship between lenders and brokers is actually quite encouraging. 

Our latest Mortgage Lender Benchmark study – which covered the first half of 2023 – actually found that overall broker satisfaction has hit a new record high. 

Across all lenders, satisfaction increased by four percentage points from the second half of last year to reach 83.4 per cent. This grew even further to 85.7 per cent for building societies, while specialist lenders saw the biggest improvement, moving from 75 per cent to 82 per cent. 

That lenders bounced back following the difficulties of the post mini Budget period, and focused on delivering what brokers and borrowers need, is a real cause for optimism about the long-term health of the mortgage market. 

 

Ease of process makes the difference

One of the biggest factors that lay behind a broker’s decision to recommend an individual lender, according to our latest survey, is the ease of dealing with the lender. That covers everything from the initial application to the ongoing relationship with the lender throughout the case. 

There’s an important lesson for lenders here. Being easy to deal with is always valuable, but in tumultuous times – and the market has certainly been through its share of upheaval lately – it becomes even more crucial. Brokers want to deliver the best possible experience to their clients, particularly when there are tight deadlines at play, and so being able to work with lenders who remove some of the additional stress is crucial. 

Tied into this were underwriting and speed of service. There’s no question that speed has been of the utmost importance in recent months, with borrowers needing to move quickly as rates have risen sharply.

Lenders who can deliver flexible underwriting and then get the case over the line promptly have understandably stood out to brokers from lenders who perhaps have been a little more prescriptive when assessing cases, or who have dragged their feet over progressing an application. 

 

It’s good to talk

One of the big trends that we’ve seen during the recent turbulence has been the importance of good communication. 

Matters have changed incredibly quickly, and lenders have been forced to respond. There’s been a real domino effect –  funding costs have grown, and lenders have been very aware not only of maintaining margins but also the risk of being overwhelmed by attracting too much business. 

It’s notable that lenders who have been able to deliver a consistently high standard of communication, ensuring that brokers understand not only what is changing by why, have been rated strongly by intermediaries.  

Recently, there’s been times when debate has raged about whether the role of the business development manager (BDM) even has a future in the mortgage industry, yet we’ve seen precisely why it’s such a crucial position. BDMs are a valuable bridge between brokers and lenders, and if anything have become more integral to delivering a good experience to borrowers as cases have become increasingly complex. 

 

Learning lessons

Only time will tell how the latest market disruption will impact satisfaction ratings for the second half of this year. There’s an obvious challenge for lenders to meet here, in maintaining those quality channels of communication and continuing to deliver an acceptable speed to offer. 

During the pandemic, we saw that brokers were scathing about lenders who did not return swiftly, or adapt their processes and procedures to meet changing needs. Brokers are obviously understanding of the pressures that lenders face, but that understanding will only stretch so far. They expect lenders to continue to invest in their online systems, to deliver competitive products, fair underwriting and be transparent in their communication. 

Lenders who have learned from previous mistakes – whether their own or those of their peers – and are able to meet those expectations will continue to win favour from intermediaries in the second half of this year and beyond. 

Lenders recapture broker satisfaction in first half of 2023

Lenders recapture broker satisfaction in first half of 2023

According to Smart Money People’s Mortgage Lender Benchmark for H1 2023, overall satisfaction with mortgage lenders improved by four per cent to 83.4 per cent. This was the highest average rating recorded by the benchmark. 

Satisfaction with specialist lenders rose by seven per cent to 82 per cent. 

The net promoter score (NPS), which measures loyalty, ranged between -46.6 and +68.4. The average loyalty score for all lenders was +34, which was an increase of 12.9 points on the last report. 

Smart Money People said lender speed and communication were the most improved metrics, with satisfaction with lender speed coming to 77.7 per cent, which was a 6.7 per cent increase. Sentiment towards lender communication increased by 4.5 per cent to 81.1 per cent. 

Halifax was named the best bank by brokers, while West Brom Building Society was named the best building society lender. The best lifetime provider was Canada Life and Pepper Money was recognised as the top specialist lender. HSBC was named the best buy-to-let lender. 

 

Reliance on sourcing systems 

Smart Money People said brokers suggested that lenders were not acting quickly enough to innovate products and meet their needs. 

A third of brokers said they were not being listened to and systems were being updated.  

Advisers were generally happy with how easy products were, with an overall satisfaction rating of 82.6 per cent.  

Smart Money People said brokers seemed to no longer be complaining about the accuracy of information, which used to be a common criticism. It said this was because brokers were now using sourcing tools instead of contacting lenders directly. 

The study was conducted between March and May, before much of the recent market turbulence, and gathered the opinions of 775 brokers on 113 lenders. 

Jacqueline Dewey, CEO of Smart Money People, said: “Despite the almost constant volatility and pressures across all aspects of the mortgage process, I find the results in our tenth edition of the Mortgage Lender Benchmark encouraging. They show a commitment by lenders, whatever the market conditions, to deliver a great service and experience to brokers and their customers. 

“Since our H1 2023 survey was conducted, we’ve seen yet another state of flux with questions raised about how lenders interact and communicate with brokers around rate changes. It will be interesting to see how that’s reflected in our H2 2023 study, with the results announced late Q4 2023.”   

Affordability concerns driving growth in technology – Dewey

Affordability concerns driving growth in technology – Dewey

At a time when interest rates were already rising, inflation soaring and the cost-of-living crisis was squeezing the budgets of many UK households, the fallout from the mini Budget was a further blow to millions of homeowners across the country who saw their monthly payments increase and borrowing capacity reduce as mortgage lenders moved to tighten lending criteria.  

According to figures from the Office for National Statistics, approximately 1.4 million UK households are expected to experience rate shock when their current fixed rate mortgage comes to an end this year, with 57 per cent of those up for renewal originally fixed at rates below two per cent. Given the fact that the Bank of England base rate is currently sitting at 4.25 per cent, many of these people will now have to pay more to borrow less than they would have a year ago.  

This perfect storm of rising interest rates and reduced lending criteria means the majority of brokers are now facing increased complexity when trying to determine their clients’ affordability and borrowing capacity, while simultaneously balancing price and lending criteria, when taking out a mortgage. It is here that tools such as affordability calculators can play a vital role in streamlining the advice process.  

 

The need for affordability calculators 

According to our biannual Mortgage Lender Benchmark survey, it is clear that demand for affordability calculators remains high, with a slight uptick in queries in the second half of 2022 versus the first six months of the year, following the impact of the mini Budget in September 2022.  

While sentiment across the board varied regarding the accuracy of some affordability calculators, the general theme among respondents was overwhelmingly positive, with brokers citing time saving and indication of borrowing capacity as the greatest advantage of using technology providers.  

 

Industry mood

Comments such as “affordability is a key consideration for my clients right now and this tool ensures that we can ensure quickly what is able to be offered along with a full audit trail of research,” and “it is not 100 per cent accurate but great for getting an idea of borrowing” proves the increased value of affordability calculators in the mortgage advice process.

Meanwhile, long-time users of the technology said they “wouldn’t be without it; it brings so much to my business”, illustrating that affordability calculators were in high demand even before the current credit squeeze took hold.  

Tanya Toumadj, CEO of Mortgage Broker Tools, commented: “Affordability has become even more complex in the last 12 months, so the importance of affordability platforms is even more pronounced in the current environment.

“The accuracy of an affordability platform is the most important feature for a broker (stated by 64 per cent of brokers in the 2022 Mortgage Affordability Report), and this can vary significantly across different platforms, so it’s important that brokers look into the accuracy of results delivered by any platform they are considering using.” 

Neil Wyatt, sales and marketing director at Mortgage Brain, said: “We are acutely aware of how important the accuracy and availability of affordability tools are, simultaneously obtaining accurate results from a broad range of residential lenders not only saves brokers a huge amount of time but provides a robust compliance audit trail.” 

Jodie White, head of mortgage products and transformation at Legal and General Mortgage Services, said: “While the cost of living crisis continues to impact buyers’ affordability, it’s really positive to see brokers and their clients benefitting from the use of affordability calculators.

“Not only are they an invaluable tool in helping customers understand how much they could borrow, but they help streamline the customer journey both for advisers and their clients.” 

 

Room for progress 

While there is still quite a way to go in terms of the accuracy of some technology provider offerings, particularly given current interest rate fluctuations and frequency of product changes among lenders, affordability calculators are proving to be an important and invaluable tool for brokers when advising on product suitability.  

This is even more important in the current economic climate where affordability, over and above rate and criteria, is a key priority in determining the borrowing capacity of consumers and ensuring they can continue to keep up with repayments while remaining in their homes. 

Time to listen and learn from consumer feedback – Dewey

Time to listen and learn from consumer feedback – Dewey

From 31 July 2023, companies will now be required to act to deliver good outcomes for customers. It has four outcome rules and requires that companies ensure:   

As part of the Duty, companies are required to assess and monitor whether they are delivering good outcomes to customers. Additional reporting for the board is also required.  

For brokers, this means it has never been more important to listen to customers and learn from their feedback to ensure that products and services are meeting expectations and demand. Not only can this bring benefits to how you approach your recommendation process, it can also help create business efficiencies that prove beneficial. 

With the cost of living crisis and uncertain economic environment placing significant challenges on consumer finances, there has never been greater pressure on brokers and the wider financial services industry to ensure they meet client expectations. Listening to customers and collecting feedback at every stage of a client’s journey is essential to satisfying these needs as well as meeting regulatory requirements, including Consumer Duty.  

  

The benefits of customer feedback

Customer feedback can provide a valuable insight into the workings of your business, helping you to make efficiencies and improve outcomes where necessary. Without feedback, things will not evolve, so questioning and challenging existing processes will ensure you are delivering the best customer outcomes and enable you to react quickly to any changes needed. 

For example, something as simple as the introduction of an extra step in the application process to help streamline the workload of the admin team may have inadvertently added an extra five minutes onto the process for your customers. Only by seeking customer feedback can you measure the impact of the process and whether it has had a positive or negative effect.   

In all cases, reacting quickly and making changes will stand you in good stead. This may mean recently implemented processes that may have had unintended negative consequences may have to be reversed or reconsidered, while a trial process may have to be made permanent following positive customer feedback.  

It is also important to understand that negative feedback does not have to be viewed as a setback. Instead, brokers should consider all customer reviews, both good and bad, as a guideline for where improvements can be made. After all, your customers represent your target market and their opinion matters. By connecting with your customers and listening to their likes and dislikes and evolving your business to better meet their needs, you can help your business stand out from the crowd.   

  

All feedback is useful

Acknowledging all customer feedback, both good and bad, is also vital. How you respond to consumer feedback is integral to how prospective customers perceive you and your business. This is especially true when responding to criticism, as how you treat your customers can have a significant influence on whether others choose to use your services.  

It’s not just direct feedback that matters either. Responding to reviews on external websites can also help your business by expanding your reach and improving your company’s visibility. These websites can act as a free marketing tool for future business by offering potential customers insight into your services.   

While some brokers may be discouraged from seeking customer feedback in case it is negative or damages their reputation, it is always better to proactively seek out the opinions of your customers and implement changes, to prove you are listening and engaged with your client base.  

Doing so can improve their trust in your business, cement your credibility as a broker and help you to meet the demands of the regulator while delivering a great customer experience and outcome for your clients.  

Broker satisfaction drops to record low ‒ Smart Money People

Broker satisfaction drops to record low ‒ Smart Money People

The results found that overall broker satisfaction in the second half of 2022 has dropped to 79.3 per cent, down 1.9 percentage points. It’s the first time the score has fallen below 80 per cent since the second half of 2020.

Halifax was rated as the top bank, while the West Brom topped the scores among building societies. Foundation Home Loans was the top scorer for both buy-to-let and specialist lending, and Canada Life topped the lifetime lender category.

Building societies were the top-rated sector for broker satisfaction for the ninth time, though specialist lenders saw a considerable fall in their metrics. Overall satisfaction dropped to 75 per cent, while their net promoter score dropped 24.6 points to just 1.2.

By contrast, lifetime lenders say the smallest change, with satisfaction down by just 1.1 per cent.

 

Sharp fall in broker opinion

Jacqueline Dewey, CEO of Smart Money People, said there had been a “sharp drop-off” in brokers’ opinions of lenders, following the “turbulence” of the mini-Budget.

She continued: “Brokers are frustrated by the situation they find themselves and their clients in, with constant changes and products being withdrawn after applications have been submitted.

“Our analysis has found brokers are craving some stability within the market, and that brokers need support from lenders – they need to be able to rely on and have confidence in lenders, and whilst processes adapt, communication remains key.” 

Brokers struggle to stay on top of lender updates – Smart Money People

Brokers struggle to stay on top of lender updates – Smart Money People

Advisers said that sourcing systems help but they don’t completely rely on technology for product updates, according to a survey by financial services review site Smart Money People.

Two in five brokers said they rely, at least in part, on emails from lenders to keep abreast of the latest product and criteria changes.

Some advisers “expressed despair” they couldn’t keep up with updates after market turmoil following the mini Budget in September.

 

‘Brokers are certainly frustrated’

Jacqueline Dewey, chief executive of Smart Money People, said: “The findings we’ve published today indicate the extent to which mortgage brokers have found it difficult to stay on top of all the movement in lenders’ product offerings, brought about by the recent economic turmoil.

“Brokers are certainly frustrated that some lenders are changing rates on a Friday evening or Sunday, making them feel they need to work out of hours. With so little notice it’s adding a lot of extra pressure to already stressed brokers.”

With figures such as these and the upheaval that has been seen in the market since late September, brokers are risking ‘burnout’, a subject that Mortgage Solutions discussed with those in the industry in early October.

SMP seeks feedback to mortgage lender benchmark report

SMP seeks feedback to mortgage lender benchmark report

It is a bi-annual report that aims to highlight which lenders are offering the best service levels to brokers and customers.

The results of the survey are due to be released in December, and brokers will be able to share their feedback from today until the end of October.

Brokers can feedback on the last five lenders they have done business with, and they can also rate the technology they use as well as criteria and sourcing systems.

This will be the ninth edition of the report, which aims to help lenders understand what brokers think about them and how they compare to other lenders.

In June, the report found that overall satisfaction with lenders was 81 .2 per cent, which is in line with same period last year.

Jacqueline Dewey, CEO of Smart Money People, said: “As complexity increases across the mortgage market for a variety of reasons, the value of the advice process continues to escalate. However, so too does the pressure on intermediaries to secure the right products for their clients from the lenders who can best facilitate them.

“As such, it will be fascinating to see which lenders are meeting expectations, who are exceeding them and who may be dipping below them.”

She added: “It’s certainly a challenging time for everyone concerned in the mortgage journey and this only emphasises the importance of understanding current market conditions from a broker perspective and for lenders to get to grips with what they need to do to better serve their ever-changing needs and those of their clients.”