Broker bugbears

[Blog from Karen Bennett, Sales and Marketing Director, Commercial Mortgages, Shawbrook Bank]

Shawbrook Bank
21st August 2013
Blogs

At Shawbrook, we spend a lot of time with our brokers. In fact, I cannot think of a day since our launch that has not involved a significant amount of broker interaction.  Brokers not only provide business opportunities for our Commercial Mortgages division, but also act as the first filter in assessing whether a deal is right for Shawbrook. Brokers manage the case, and more importantly the client, all the way through from application to completion. They manage all third party relationships and resolve any issues that may arise throughout the processing of a case.

In short, brokers are central to everything we do - the nature of our model means that they sit at the very heart of our business. And, aside from being invaluable to our business, our dealings with our network of brokers is also one of the most enjoyable aspects of the job.

So, over the years, we have got to know a fair bit about how brokers work. What makes them tick. What they value. And perhaps more importantly: what drives them mad!

This is invaluable information for us as we work hard to maintain the fantastic relationships that we have developed with our broker partners. Understanding the common ‘broker bugbears’ allows us to ensure we are only providing products and services that are appropriate and appreciated.

So what have we learned?

Inflexibility

A common frustration amongst the brokers we speak to is the inflexible approach taken by some lenders to the initial assessment of a loan application. Responding to the impact the financial crisis had on their balance books, more restricted lending policies have been introduced by some mainstream lenders. This inevitably makes it harder for brokers to meet many of the opportunities that come through the door, and hinders viable businesses - notably within the SME and property investor markets - from securing the finance they need.

At Shawbrook, we are not bogged down with historic balance sheet issues, allowing us to focus on the future. All of our cases are reviewed by experienced underwriters. Combined, these factors mean brokers can offer an alternative option to clients that have been turned down elsewhere.
We know that this approach is appreciated by brokers. Lucy Hodge from Vantage Finance, one of Shawbrook’s Strategic Partners, explained: “Shawbrook has been a breath of fresh air in a market which has suffered severe liquidity issues. These issues have resulted in a lack of availability of funding in the sector, primarily for those trying to obtain finance for property investment, but trading businesses as well.  Shawbrook has demonstrated its commitment to lending where other Banks have retracted.”

Product restrictions

Brokers know that a one size fits all approach does not work for clients. Each business is unique, as are client’s funding requirements, and therefore another frustration for brokers is the limited and inflexible range of products offered by some lenders.  Our managed panel of brokers regularly send us deals that push the boundaries of a product, and we will always do what we can to accommodate the individual circumstances of their client.

Sometimes we see multiple demands for a similar loan type which falls outside the products we offer. We will work with brokers to develop a new solution and meet this demand in the market. Last year Shawbrook enhanced its suite of commercial loan products based on this feedback and we now offer 14 products ranging from simple buy-to-lets to specialist BTLs, commercial investment, short term loans and trading business loans.

Challenging Relationships

We know that there is nothing more unproductive for a broker than a challenging relationship with a lender. Being let down by a lender is probably one of the biggest bugbears for brokers; anything that slows down, or stops them delivering for their clients will frustrate even the most relaxed of broker. Trust is critical, as is transparency.

At Shawbrook, we know that brokers trust us to deliver on our word and this is not a responsibility we take lightly. That’s not to say that every deal is a ‘yes’, but we do our utmost to reach a decision speedily. Likewise, we publish our service-level-agreements and work hard to stick to them, which means being open, quick and dedicated.

This approach allows us to develop ever stronger relationships with our valued broker partners. As James Hardwick from Charleston Financial explains: “It is refreshing in the current market to have a strong relationship such as the one we have with Shawbrook who are continuously working to improve their customer offering by supporting and working with brokers”.

Lack of Recognition

Brokers work hard for their clients and perform an essential role for many lenders. However all too often, their efforts go unrewarded. At Shawbrook, we know how important brokers are to us – and we believe they should know it too.  Last year, we launched our Strategic Partner Programme, which was specifically designed to recognise high quality business generation from our network of expert brokers. Originally launched with 18 partners, the programme has since expanded and we now have 28. All receive exclusive process and marketing benefits as well as a higher commission structure to reflect the lower processing costs associated with completing the business they submit.

It is our way of recognising the value brokers add to our business. And we know this recognition is appreciated, as David Whittaker, Managing Director at Mortgages for Businesses, confirmed when presented with Strategic Partner status: “We are delighted to join the programme. We do a lot of business with Shawbrook on behalf of our property investor clients and it’s great to have our efforts rewarded.”

We can’t promise to take away every frustration or challenge that broker’s face on a day-to-day basis. As much as we would love to, we can’t stop traffic jams, computers crashing, or cold-callers ringing. But, for situations within our control, we will always endeavour to support our network of brokers in any way we can.

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