'Lenders do need to treat us with a little more respect'
Broker satisfaction with lenders is hitting new lows, but one market insider thinks brokers also need to adjust their expectations and be more realistic.
Barry Webb (pictured), chief executive of Mortgage Saving Experts and The Broker Network, said the whole industry has been the busiest it has ever been since the first lockdown ended in 2020, and brokers have not had the chance to catch up.
He said that as a result, motivation has been low and people are looking for someone to blame, with lenders taking the brunt of that frustration.
One measure of that response: broker satisfaction with lenders has hit its lowest level recorded outside of the pandemic, according to a report by Smart Money People.
What is driving dissatisfaction with lenders
Webb said many brokers feel lenders have not been doing enough to assist brokers and their clients alike, with matters becoming more complicated for certain applicant types. However, he said that lenders’ hands were often tied because the state of the economy has put many customers at higher risk.
Another factor in declining satisfaction levels, Webb said, is likely staffing challenges at lenders. Webb added that in recent times many lenders have had to implement strategies to create safe working environments for their staff members due to the pandemic.
“As we also know, since Brexit, staff numbers have decreased massively as some hard-working Europeans returned to their native countries,” Webb said.
Webb believes more should have been done to tackle rising Service Level Agreements (SLAs), but he added that if there is no one applying for the positions, then lenders have not had chance to replace lost staff.
Lenders ‘could have done more’
“I do feel like lenders could have done more though to help the industry as a whole,” Webb said, “by being less ‘risk averse’ and having a human approach to underwriting.”
Webb said he has witnessed lenders conduct incredibly tight underwriting guidelines, which he believes is unnecessary, as in 2008 the regulator saw that lenders were prepared for eventual rate increases.
“Brokers make up 80% of mortgage lending in the UK, so lenders do need to treat us with a little more respect,” Webb said.
Webb added that brokers know what they are doing, and he believes clear guidance and communication from lenders on what is required from the client is key to swifty progress the mortgage application and keep all parties involved in the process happy.
“The whole industry has been under immense pressure from clients and I do believe confidence is creeping back into the marketplace with SLAs coming down, lenders lending at higher loan-to-values (LTVs) again and rates falling,” Webb said.
Has your satisfaction with lenders declined in recent times? If so, why? Let us know in the comments below.
