Thompson added that it is important that the whole industry ‘gets that right’.
So, Mortgage Solutions asked this week’s Marketwatch panel, how brokers and lenders are going to create strong, sustainable relationships.
Relationships between brokers and lenders are as strong as they have been for some time, with both parties realising the importance of each other, and working together in many areas – including technology.
At a strategic level this is vital, with lenders considering their plans for integration, and working to understand the needs of brokers, tech firms and distribution partners.
Strengthening those relationships to get the right outcome for brokers, lenders and customers is one of the most important objectives for 2019.
On a transactional level, there is also a lot that can be done to improve relationships, with lots of help out there for brokers from their lender partners.
This can be a huge benefit for the customer with good brokers knowing what lenders will do outside published criteria, not just what the sourcing system tells you as all lenders have differences in policy, service, rates and risk appetite.
Brokers should also foster good working relationships with lenders’ business development managers as they can add great value. They are experts in their lender’s policy and procedures and will help if there is any difficulty with an ongoing case.
They can also provide invaluable support ahead of submitting an application for a tricky or complicated case. At Accord, we also help brokers by giving them direct contact with the underwriter managing their cases.
And remember there is lots of free help and information out there, from mortgage clubs and networks, trade press or lenders, such as our own Growth Series Hub for example.
Shaun Church, director at Private Finance
The greater the relationship between mortgage and broker, the better. This applies not only for industry but also for consumers.
While this relationship is central when introducing and referring new clients, we believe the broker-lender relationship should not terminate as soon as a new client is on-boarded.
Instead, we would argue that when clients reach the end of their term, rather than being automatically directed to similar products within the lender’s product offering, clients should also be encouraged to seek advice from a broker in all cases.
It is as important to get mortgage advice when renewing or switching mortgages as it is when taking out a new loan. The likelihood that the borrowers’ financial situation or needs will have remained unchanged over the length of their mortgage term is highly unlikely.
To act in the best interests of clients, we believe lenders should encourage them to have a conversation with an independent broker about both the options they as a lender are recommending, and some of the alternative options available on the market, to ensure the borrower opts for the right product for them and their future financial needs.
We can’t afford to overlook that technology will increasingly play a role in the broking process. With access to data en masse and frameworks such as Open Banking, lenders are naturally in a better position to develop technology for the market.
However, brokers have a crucial role to play in feeding into the development of this technology and utilising it to best serve the consumer.
Dominik Lipnicki, director at Your Mortgage Decisions
Clearly, it is in everyone’s interest that lenders have a strong relationship with the mortgage intermediary sector. This has however rarely been the case in the past, especially when the mortgage market is buoyant.
All too often lenders appear to believe that they can meet lending targets irrespective of the way that they treat mortgage intermediaries, with rates being pulled last minute, service standards falling without warning, lending criteria changes without notification, with all of these doing much to alienate the adviser sector.
I have never been approached for my comments by a lender when they are looking to redesign their processes or systems. I don’t believe that I am the exception, with lenders often doing too little to ensure that they are intermediary and client ready.
I find some lenders’ attitude towards the intermediary sector baffling.
Good advisers give them fully place-able cases, manage the application process, client’s expectations and deal with issues as they arise, ensure that adequate protection is in place, all for a payment of a procuration fee.
Yet, we still see some lenders offering client direct deals, undermining the broker community.
We are here, for our clients through thick and thin, be that in the downturn of 2008/2009 or when the market is riding high, all that we require is that lenders acknowledge the huge contribution that we make to their lending targets.
Speaking with colleagues in the industry, I know that we are ready and committed to having the very best relationship with lenders.