In the Spotlight with Tom Gurrie, Vernon BS

We spoke to Tom Gurrie, intermediary sales manager at Vernon Building Society, about the role of smaller mutuals in the broker market.

Related topics:  In The Spotlight
Rozi Jones
18th April 2019
Tom Gurrie Vernon
"We have started to expand our distribution through selected clubs and networks, and will continue to do so, only when we know we can maintain our service levels."

FR: Why should a broker look at small building societies when they can find better rates with the big banks?

If mortgage borrowing was only about the best rate we wouldn’t need mortgage brokers! In reality many people have circumstances that don’t fit the mould of the high-volume lenders, which is where our individual underwriting, no credit scoring, flexible approach can help.

FR: How does your service compare with larger lenders who can boast app to offer times of one week?

We provide a personal and individual service. This means we can say ‘yes’ more often than a ‘production line’ lender, however we may have to work harder to get to this decision.

FR: As you grow distribution through brokers, how can you ensure your service levels are maintained?

We’ve been careful to control the growth of our distribution so far, with some geographical restrictions to ensure we maintain good service levels.

We have started to expand our distribution through selected clubs and networks, and will continue to do so, only when we know we can maintain our service levels, which are so important to brokers.

FR: Vernon has been in the RIO market for longer than most other lenders. What has been your experience and what would you say to brokers who are unsure about advising in this sector?

As with many things, there can be uncertainty over something new. This was highlighted in the recent Insights poll of brokers where 29% said they were still not confident that they understand RIOs well enough to advise on them.

In reality the additional requirements of the sales process for this market are not hugely onerous and, as always, clearly documented advice is critical. We have been lending RIOs since 2015 and our experienced intermediary team is always on hand to guide brokers and answer any questions you may have.

FR: What sectors are you focusing on in 2019?

We are building on our strong buy-to-let offering, where we cover most sectors – holiday lets, Ltd Companies etc. Also, we plan to expand our family assist options to help first-time buyers.

FR: What is the first thing you would do if you were tasked with fixing Britain’s broken housing market?

The common answer to this question is ‘build more houses’. However, research shows that the supply problem is generally restricted to London and the South East.

As a North West-based building society our answer would be to more evenly spread investment across the UK’s regions to create jobs in areas where housing supply is plentiful. Otherwise people in these regions have to move for work which just exacerbates the problem hotspots.

FR: What was the most satisfying case you completed last year?

We helped a lady who had just been through a divorce in her mid-fifties, who needed to raise funds to pay to her former husband or sell the property she had lived in for many years.

Although unable to afford the mortgage in her name only, we were able to complete an application jointly with her adult son who, although having his own mortgage and family to support, was willing and able financially to help out his mother.

Usually when we offer a ‘joint mortgage, sole proprietor’ arrangement, it’s the parents who help their child onto the ladder, but it was satisfying to use the same product in a different way to help this client keep her home.

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