Are brokers and lenders becoming closer?

Brokers and lenders haven’t always made easy bedfellows – the communities of intermediaries and financial organisations are not necessarily closely aligned, despite working in the same arena. Not so much a case of sitting on the fence, it’s seemed, as remaining firmly on either side of it.

As Robert Sinclair (left) chief executive of the Association of Mortgage Intermediaries (AMI), told Mortgage Introducer recently: “If I go back to when I started there was quite a lot of ‘them and us’, lenders versus brokers. So, it was very conflicting. There was a lot of anger between the two sides. And I've worked very hard over the last 15 years to make it a partnership.”

And sure enough, in Smart Money People’s latest Mortgage Lender Benchmark report, drawn from the feedback of over 950 mortgage brokers, they gave lenders the highest score ever recorded.

Independent research by the financial services review site – based on 4,490 reviews of 111 lenders - found that the overall average lender rating hit a record high of 83.7%, up 0.8% from the previous half-year period.

All sectors — banks, building societies, lifetime, and specialist lenders — saw an increase in scores. Building societies scored the highest at 85.7%, with lifetime lenders close behind at 85.5%.

Could it be that relations have thawed… that brokers’ gripes about lenders’ exacting criteria and products rates changing at short notice have been put to one side? And that lenders have set aside grumbles about brokers not providing enough details about their clients? Could a closer bond be forming between the two?

How much do brokers contribute to lenders’ success?

Kay Westgarth (pictured second from left) has extensive experience across the lending space, including at Key Group and Standard Life Home Finance, and acknowledges the role that brokers play in helping lenders succeed.

“I have worked closely with intermediaries since 2001, and if I have learned anything, it is that building up strong relationships with intermediaries is vital, and we can only do so if we listen to their opinions,” she said. “It doesn’t matter whether the discussion is centering on product development, or on whether face-to-face support is preferable to a virtual consultation. Everything begins with a conversation with our intermediaries, who know their market best.

“We want to understand how we can make their journey easier and we want to know the pain points so we can remove their anxieties. Our aspiration is for our partners to reach their full potential as efficient and effective intermediaries.”

Westgarth urged advisers to seek support from lenders’ business development managers.

“Keeping up to date with the latest regulatory and industry developments is key to future success,” she advised, “so use your lender support no matter how big or small your firm may be.”

In the Mortgage Lender Benchmark, the average net promoter score (NPS) for all lenders improved by 6.5 points from H2 2023, reaching +38.7, the highest in the study’s history. Scores ranged from -83.6 to +84.4. Atom bank was named the best bank by brokers, while Principality Building Society was the best building society lender. Pure Retirement was recognised as the best lifetime provider, InterBay as the best buy-to-let lender, and Pepper Money as the top specialist lender.

READ MORE: How often do brokers plan a career in financial services?

Do mortgage lenders value brokers?

Having been in the broker market for almost two decades, Brian Brodie (pictured second from right) understands how integral intermediaries are to lenders’ success. As the recently appointed CEO of startup bank, Bevan Money, Brodie appreciates their contribution.

“I will never take the support of brokers for granted and we will always look to provide a service that is efficient and decisive,” he said. “There is nothing worse than a lender giving an initial yes only for this to change as the process develops.”

He added: “We will build our mortgage business around the needs of brokers and our partnership will be based on both quality and volume.”

Joela Jenvey (pictured right), an independent mortgage and protection adviser at Nurture FS in Devon, is pragmatic about the relationship between brokers and lenders.

“When difficulties occur, as they inevitably will, the best lenders will deliver that message with transparent explanations and alternative solutions even if it means a compromise,” she said.

And as Robert Sinclair wisely noted to Mortgage Introducer, much of lenders’ business comes from intermediaries.

“Working together in partnership on a range of issues is really important,” he reflected. “Understanding another person's perspective is so critical - the risks are on both sides.”