FR: With the European Mortgage Credit Directive soon to hit the mortgage market, what are the challenges or opportunities you think the industry will face in its wake?
I would expect there to be some impact on the mortgage market. The bigger challenge, and opportunity, is preparing customers for future interest rate rises. We are seeing an increasing number of borrowers sitting on low variable interest rates, many of whom will have never experienced a rate rise.
The market needs to provide flexible mortgages that can mitigate the impact of an increase in rates, such as TSB’s 10 year Fix and Flex, which allows customers to move to another deal after five years without having to pay an early repayment charge (ERC).
FR: What challenges do you feel are most affecting brokers in the current economic climate – and how do they affect the way TSB interacts with intermediaries?
We know that brokers are incredibly busy, especially since the changes introduced by MMR which has seen a surge in the number of people using a broker to get a mortgage. Inevitably this means that it is important for brokers to know they can speak to the right people with the right knowledge to be able to get the information they need.
We’ve built our expert to expert service with exactly this in mind, providing brokers with direct access to the experts they need within TSB Intermediary. We believe our commitment to services is what sets us apart from our competitors as we seek to build a different kind of intermediary business.
FR: With the MPC pushing back the timeline on a rate rise, how do you think this will affect the rates seen in the market?
It is difficult to predict what will happen to mortgage rates. Over recent weeks there has been a bit of a bottoming out of interest rates, and at the same time at TSB we’ve seen a continued strong demand for our 10 year Fix and Flex mortgage. An indication that more customers are seeking to grab a low rate for the next ten years, but still retain the flexibility to switch/remortgage should the require to do so, due to the low ERC.
FR: What is the most important piece of advice you would give to an intermediary starting out in the industry today?
Focus on doing the right thing for your customers and you will create advocates.
FR: What can intermediaries do to ensure better relationships with lenders?
It is important for brokers to understand exactly the type of customers a lender is looking for. This will help ensure that customers avoid disappointment and being given incorrect information along the way. It can also help prevent the disappointment that comes with a “slow no”.
FR: If you weren’t working in financial services, what would you be doing?
After 25 years in Intermediary mortgages it’s difficult to imagine doing anything different, though based on how much dog walkers charge per hour, it seems like a good way to earn a living.
