Brokers and lenders in the commercial mortgage sector will have been cheered by the latest research published by Savills in its monthly Commercial Development Activity Index.
This showed the strongest rise in commercial development activity for three years in March, in both public and private sector construction, with more than one-third of the survey sample indicating a rise and only 1 per cent indicating a decline.
With two-fifths of respondents indicating a rise in private sector development, this was the most marked increase since March 2004 and private sector development continues to rise more sharply than the pubic sector equivalents.
get the daily news delivered to your inbox
No property development can ever take place without an initial cash investment, which is almost certain to be raised by way of a mortgage loan – so accelerating levels of property development should also mean more business for commercial lenders and brokers.
Property data figures also recently revealed that private individuals made gross investments of £3.7 billion directly into commercial property during 2005, representing 8 per cent of all purchase activity. This supports the growing trend of private investors looking to add commercial property assets into their portfolios.
Key differentiator
If there is plenty of new business demand and no lack of lenders to provide suitable products at the right price, then the key differentiator is the level of service excellence that is delivered. It is no coincidence that the proportion of residential mortgages sold through brokers is rising, and this can only be attributed to the fact that borrowers want to receive personal service from experienced professionals.
As commercial borrowers, looking both for development and investment finance or the capital to purchase their own business premises, also seek the knowledge and expertise of brokers to find them the best deal, they should also be able to rely on receiving top quality service. This is not just essential in delivering the first deal, but it is also the only way that repeat business can be secured.
download our news ticker
Broker service excellence cannot be achieved without matching service levels from lenders. This includes a choice of products, priced fairly and transparently to suit needs and credit profiles of a wide variety of borrowers. In addition, lenders need to offer a commitment to fast, friendly service on which the broker can rely when discussing with the client the timescales for delivery of the funds.
Publishing standards
It is crucial that the delivery of service excellence plays an important role in any business’ growth and success. It is important to remain strong and firm in the beliefs of delivering actual results and not just airy sentiments. This can be helped by publishing service standards. Promising things such as an instant response to telephone enquiries and an indicative terms letter, plus customer illustration to be issued within two working hours is good business practice.
This means that all new mortgage applications received before a certain time will be processed the same day, and offers will be issued within this timeframe if all necessary information has been received with the application. As well as all the solicitor information and conveyancing, it means intermediaries can also have direct contact details regarding the processing of applications, and documentation will be emailed wherever possible.
Regarding field and marketing support, every intermediary will have a dedicated, regional sales manager and business development manager, together with a head-office based sales co-ordinator. These are available for support with training needs, and broker literature is also a useful tool that should be designed as comprehensive and easy to use with a number of guides, packs and standard forms available to download from our website.
catch up on the industry buzz
Focusing on service standards should encourage brokers to demand high service levels from all lenders. This in turn, should help to drive up standards across the sector and improve its reputation at a point where there is every indication of scope for rapid business growth.
Regarding field and marketing support, every intermediary will have a dedicated, regional sales manager and business development manager, together with a head-office based sales co-ordinator. Field based trainers are also available for support with training needs, and all broker literature has been designed as comprehensive and easy to use with a number of guides, packs and standard forms available to download from our website.
By publishing these standards, we hope to encourage brokers to demand high service levels from all lenders. This should help to drive up standards across the sector and improve its reputation at a point where there is every indication of rapid growth.
find the latest industry jobs
