Research reveals what mortgage brokers are looking for in a preferred lender
Clear and concise criteria are the most important factors for brokers in choosing a mortgage lender, according to new research from specialist lender Pepper Money.
Research conducted on behalf of the specialist lender found that just over four in 10 brokers, or 41%, value clear and concise criteria as the most important characteristic in identifying a preferred lender.
The second most important, mentioned by nearly a quarter, or 24%, of respondents, was direct access to decision makers and responsiveness of a lender through its contact channels. Over one in five, or 22%, said they made a decision based on sourcing systems.
The survey of more than 500 brokers also revealed that a lender’s website and application platform are most important to just 6% of brokers, while only 4% said they chose a lender based on an existing relationship.
When asked what steps lenders could take to support brokers in growing their business, nearly 32% said it was important to be kept up to date with product and criteria changes, while almost 28% said they would like marketing support to help them attract new customers.
Just under 20% of brokers said they would like apps for underwriting and processing, while 10% wanted help retaining existing customers, and 8% would like to see more digital integrations.
“This research supports our belief at Pepper Money that the publication of clear and concise criteria is vital to help brokers perform their jobs effectively,” Ryan Brailsford (pictured), business development director at Pepper Money, commented. “However, just publishing criteria is not enough. Lenders need to commit to underwriting cases in line with the published criteria, and not request additional documents or ask for information that is outside of their standard guidelines.
“This is a trend that brokers see all too often, and it can be incredibly frustrating for brokers who then may need to explain to their customers why a case has been declined by their recommended lender.”
Brailsford added that as part of its support for brokers, Pepper Money is also launching a dedicated campaign designed to help them improve the effectiveness of their marketing for new customers, which was identified in the survey as one of the most important things a lender could do to help brokers grow their business.
“The campaign will provide practical help for brokers and could ultimately help more customers end up with the right mortgage for their circumstances by making them aware of the benefits of professional advice,” he said.
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