FR: The secured loans industry has been going from strength to strength recently – do you see this continuing in the next twelve months?
Very much so, I wouldn’t be here if I didn’t.
Having been in the industry 16 years, I’ve seen the market dwindle to only a few lenders and times have certainly been very difficult. But now, there’s an excitement and interest surrounding the market when talking with people and the appetite to lend has certainly returned. New lenders have entered the market, sparking competition which has led to some innovative products. In the last fortnight alone, 3 lenders have enhanced their criteria, 2 of which slashed their rates to their lowest ever.
FR: You’ve had a variety of roles in the industry – do you think this has given you the necessary skills to head up intermediary development?
Definitely! Having worked in both lending and broker environments means not only do I have a good hands-on perspective of the industry from both sides, I have an in-depth knowledge of the necessary procedures too.
I am also lucky to have worked with some very influential people over the years, so I have learned from the best and understand the importance of service, especially in this industry.
FR: What does the next year hold for you the Loans Engine? Anything exciting you can tell us about?
After 25 years in the market and having brokered loans in excess of £2bn, 2013 was a pivotal year for The Loans Engine. A combination of internal change, coupled with exciting new network relationships has benefitted us. More importantly, some exclusive arrangements with lenders who now provide larger loans to higher LTVs backed by broader criteria, benefits brokers and their clients alike.
In 2014, expect to see greater technical innovation from TLE to support broker underwriting and marketing. Also expect to see a focus on the importance of providing the best customer outcomes, whether that is via a secured loan or a remortgage.
FR: What challenges do you feel are most affecting intermediaries in the current market?
Well, FCA regulation will certainly present some challenges. FCA regulation will represent a major upheaval and a substantial amount of work will be required to implement the changes. In a recent intermediary survey we conducted, 87% of those surveyed believe the number of brokers will decline due to consumer credit regulation, suggesting an uphill struggle for many businesses, irrespective of their size.
But I feel the main challenge currently is a broker’s ability to place business and make it stick. I’ve spoken to so many recently who are frustrated with an application getting the green light at the initial stages, only to be told later down the line by the underwriter that unfortunately, they are unable to proceed. A complete waste of time for everybody involved.
FR: How do you aim to work with intermediaries on these issues?
Our process is different. I make sure that our underwriters assess a case as soon as it comes in, checking comparables and income on every application before we start the processing. We will not accept anything without checking it first and we encourage brokers to call the team up and run potential deals past us beforehand.
We work very closely with mortgage brokers, providing clear and accurate knowledge on what is available for their clients and how to obtain it. Simply providing the tools for an intermediary to allow them to work is no longer good enough; it’s about providing the assistance and service throughout the whole process, whether that’s just an initial enquiry or a large commission pay out.
FR: If you weren’t in the financial services industry, what would you be doing?
I’m a fully qualified FA football coach and I’d be coaching the next generation in an academy somewhere, preferably somewhere hot!
Thomas Garratt started in the industry as a trainee IFA in 1996 and joined The Loans Engine from Shawbrook Bank, where he held the position of underwriter. Tom is also an FA qualified football coach and in his spare time coaches at Berkhamstead FC. Having worked in both lender and broker roles, he brings a wealth of experience and a real understanding of what intermediaries are looking for in terms of products and service.
