Average net promoter level for all lenders also fell
Broker satisfaction with UK mortgage lenders has fallen to the lowest level recorded outside of the pandemic, according to review and insight platform Smart Money People.
Results of the platform’s research contained in its Mortgage Lender Benchmark report showed that overall broker satisfaction with lenders went down by 1.9% to 79.3% in the second half of this year, falling below 80% for the first time since H2 2020.
Smart Money People said the low broker satisfaction is likely a reflection of the market’s reaction to the cost-of-living crisis and the turbulent economic climate.
“The results we’ve published today shows a sharp drop off in brokers’ opinion following three editions of growth as UK lenders struggle to cope with the impact of the interest rate rises and turbulence caused by the mini budget,” Jacqueline Dewey (pictured), chief executive at Smart Money People, said. “Our analysis shows that broker satisfaction with mortgage lenders is now nearing the lowest recorded levels seen during the height of the pandemic.
“Brokers are frustrated by the situation they find themselves and their clients in, with constant changes and products being withdrawn after applications have been submitted. Our analysis has found brokers are craving some stability within the market, and that brokers need support from lenders – they need to be able to rely on and have confidence in lenders, and while processes adapt, communication remains key.”
Lenders’ net promoter score (h2)
Smart Money People’s Mortgage Lender Benchmark, which aims to analyse the state of the mortgage industry according to the views of brokers, also reported about the lenders’ net promoter score (NPS) – figures that are always keenly anticipated by those in the industry as it is a reflection of how likely brokers are to recommend a lender.
The average NPS for all lenders within the benchmark fell by 5.8 points +21.1, with lender scores ranging from -54.5 to +59.3. The top-rated lenders in the latest Mortgage Lender Benchmark, which collected feedback from over 751 mortgage brokers on 114 mortgage lenders, are listed below.
Top broker rated lenders for H2 2022: (h3)
- Top bank: Halifax
- Top building society: The West Brom
- Top buy-to-let lender: Foundation Home Loans
- Top specialist lender: Foundation Home Loans
- Top lifetime lender: Canada Life
Building societies are the top-rated sector for broker satisfaction for the ninth time, while specialist lenders have broken their streak of improvement, with overall satisfaction down by 5.5% compared to that of the year’s first six months.
Broker ratings for lifetime lenders have seen the smallest change with overall satisfaction down by 1.1%, and have improved their rating for speed by 2.4%.
Broker satisfaction with relationship managers decreased by 1.1% and now stands at 77.8%.
Finally, the report found that brokers are struggling to get updated with rapidly changing lending criteria and rates, with 43% relying on emails to keep updated with changes.
