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Mortgage Strategy Analysis

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Mark Smitheringale

Does it boil down to rates or service, or a combination of the two? A question that always arises and is never easily answered. Whilst it does depend upon personal preference and specific client needs and circumstances, the intermediary market should not shy away from smaller lenders just to save their clients a basis point or two. In fact, brokers should look upon smaller lenders as a refreshing alternative; a boutique offering which can tailor a bespoke service that bigger lenders simply cannot afford to provide.

Changes in the UK mortgage market over the last few years have seen far more borrowers fall into the ‘non standard’ lending category and for these clients, securing the right loan is key to reaching their property aspirations. Achieving this can sometimes be a challenge. As technology develops to drive ever greater efficiencies, increasing numbers of brokers are being frustrated by the non-negotiable “computer says no” credit scoring mentality of some larger lenders.

Smaller lenders are often able to reduce these frustrations as they continue to offer a service that is focused on the human touch. The proven record of higher customer satisfaction enjoyed by the UK’s building societies is testimony to their focus on delivering a flexible, pragmatic and high quality service. Strong client relationships are paramount to the essence of the traditional building society culture. Customer satisfaction cannot be fabricated and does not come with small print. It should be pure and simple and be directly proportionate to the skills and attitude of the organisation’s employees.

So, whether brokers choose to chase rates, service or both, smaller lenders continue to prove that they have a great deal to offer. Therefore, the right solution for brokers must take account of this mix in order to achieve true customer satisfaction.


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