One broker, who's operated as both, considers the pros and cons
Steve Humphrey (pictured) founded The Mortgage Pod in August 2021, following six years of working as an employed broker for a national, corporate, high street estate agency.
Humphery suggests that in little over eighteen months of being an independent broker he has arranged the highest number of mortgages, with the highest commercial value of written business, of his career.
This has led him to question whether customers want “independent and accountable advice over corporate, faceless organisations.”
Having operated in both environments, Humphrey shared with Mortgage Introducer a few fundamental differences he had observed.
“Working as an independent broker, there is more accountability,” he stressed. “Having my name above the door, I cannot afford a single bad review. There is nowhere to hide.”
In his view, some corporate estate agency customers were encouraged to speak to estate agents earning commission, and sometimes told they couldn’t view the property unless they talk to a broker first. He was also critical of corporate agencies that might load insurance premiums for more commission – a practice that, according to him, had “no place in this industry.”
Furthermore, Humphrey said marketing and lead generation naturally required more effort as an independent.
“Estate agents and negotiators are pushed very hard to book appointments for mortgage advisers, some would say too hard,” he remarked. “But they receive a commission to book appointments, so advisers tend to see a steady supply. I feel this is the reason many advisers stay working in this environment for such a long time, because of the regular appointments.”
An independent broker, who had more flexibility and a less rigid company operating structure, could offer a more personal approach he argued.
In the estate agency in which he previously worked, there was a limited lender panel of only 26 lenders, he explained. As an independent broker, he could access a much larger panel of 90-plus lenders, which assisted his advice and research.
Humphrey, however, reasoned that while he now spoke to less people, the quality of conversation was far better.
“So, the only notable disadvantage of speaking to less people is actually a positive as a lot less time is wasted,” he pointed out. “Now that there is less ‘corporate nonsense’ required, such as reporting details of each appointment or application to a sales manager. I have a lot more time for customers, so I can focus on providing the very best customer service, and ensure their journeys are as enjoyable as possible, which is exactly what they deserve.
“I now speak to people that have contacted me looking for independent home buying representation and work largely from referrals and recommendations, rather than being told who to speak to, and can afford to make much more time for each person that needs it.”
Humphrey believed that from the clients’ point of view, they could expect service someone that truly cared about their outcome, rather than potentially just being another statistic. “They will have someone that’s accountable for the advice and service,” he added.
Fee-free mortgage advice for NHS employees
Humphrey’s The Mortgage Pod, which now specialises in mortgages for NHS staff and doctors, does not have any advice fees or charges for NHS employees.
“My wife is an NHS midwife, and I have nothing but respect for what she and her colleagues do day in, day out, to help people, especially considering the enormous pressures they are under. So, this is a very little something I can do to give back to the community,” Humphrey said.
The idea for The Mortgage Pod to offer NHS staff fee-free mortgage advice started as an initial month-long incentive. However, Humphrey and his wife have since decided to roll this out permanently. He said they were glad to see some lenders were now offering professional mortgage products for certain NHS employees too.
“Giving back to the NHS and their staff is something I personally feel strongly about,” reflected Humphrey. “My first child was born during the pandemic lockdown, and the level of care, support, and understanding, not only that my wife received, but also myself, was incredible.
“Given the restrictions they were under, working 12-hour shifts in busy, hot hospitals wearing face masks all day, while constantly being exposed to risks, they all remained so positive, purely to improve our family’s experience. Not only the maternity team’s but NICU also took exceptional care of my child after he was born.
“I’m so incredibly grateful, so The Mortgage Pod is offering all NHS staff fee-free mortgage advice. We feel this is the least we can do.”
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