Mortgage Lender Benchmark H1 2020 Summary Version

H1 2020

Summary VersionPublished: 8th June 2020

Foreword

Michael FotisFounder of Smart Money People

Welcome to the summary version of the Mortgage Lender Benchmark H1 2020, our fourth edition.

The role of this research study is to find out what’s working well and what isn’t across the intermediary mortgage market from the broker perspective.

467 brokers shared their feedback about some 90 lenders, helping to highlight and explain which lenders are performing best, and which really need to up their game. This insight helps lenders better understand the strengths and weaknesses of their intermediary proposition and to better assess what improvements should be made.

This report along with access to the full broker verbatim, has proved useful to many lenders and wider stakeholders. Most notably, our SWOT analysis and heatmaps offer in depth and unique insight on some 42 lenders responsible for 94.4% of all mortgage lending in 2018 (UK Finance).

This time around we also delved deeper into the role of technology. How do brokers see technology changing the mortgage market in the next 24 months? And for the first time we asked brokers to share their experience of CRM, affordability, criteria and product sourcing providers.

Set against this background, the results make for encouraging reading. Overall brokers are happier with the lenders they do business with, and satisfaction with speed to offer has never been higher. And yet real challenges remain.

2 I Mortgage Lender Benchmark H1 2020: Summary

The lock icon in this report signifies paid content. Our full report is available to all interested parties for £1,300 and includes the following:

• Full league table data (for all lenders)• SWOT analysis and heatmaps covering 42

lenders• Broker tech heatmaps

It is also possible to acquire all verbatim feedback (for all lenders) to enable further internal analysis and to arrange an in person briefing.

Sample SWOT, heatmap and brand analysis pages

Lender heatmaps

80%

28%

0%

0%

100%

100%

91%

50%

0%

-

100%

8%

32%

34%

25%

0%

21%

13%

0%

11%

0%

28%

57%

59%

0%

0%

78%

92%

79%

86%

67%

100%

100%

64%

83%

77%

75%

0%

7%

82%

89%

38%

67%

100%

100%

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools

Accuracy & consistency

81%

86%

38%

63%

85%

100%

63%

88%

84%

90%

97%

75%

56%

70%

100%

75%

-

77%

33%

20%

0%

100%

79%

77%

80%

50%

71%

-

28%

64%

67%

26%

76%

10%

46%

77%

0% 30% 0% 30% 0% 30% 0% 30%

This free text question allows brokers to tell us what matters to them, in their own words,

which helps us to understand the strengths and weaknesses of each lender, as perceived by brokers.

The Mortgage Lender Benchmark asks brokers to ‘please tell us what you like about a lender,

and/or what could be better.’

Proportion of feedback

for a given theme

Sentiment for a given theme

(0-100% scale)

11. Mortgage Lender Benchmark H2 2019: Summary

A heatmap for all 44 lenders can be found within our SWOT analysis pages, p. 23

Summary Version

Net Promotor Score (NPS)

Overall rating %

Ease of determining product eligibility %

Speed to process applications through to offer %

Ease of determining max. loan amount %

Lender communication %

Satisfaction with relationship managers %

HalifaxAll

Banks

People

82.9

+26.3

81.1

74.1

81.2

77.1

79.6

AllLenders

Proportion of feedbackSentimentHalifax’s

DNA

Halifax“I like that Halifax is very easy to use, quick process with the checking case phone line and desktop valuations. Very quick process for my clients. Halifax system could be more slicker

and needs some updating.”Intermediary feedback

Product & Lending Process

H1 2019

H2 2019

A lender heatmap can be found on p. 28 and the

top 10 words to describe this brand on p. 8224. Mortgage Lender Benchmark H2 2019: Summary

Strengths Weaknesses

Opportunities Threats

Summary Version

Brand analysis: 1 of 8

80. Mortgage Lender Benchmark H2 2019: Summary

Accord

H2 2019 H1 2019

1

2

3

4

5

6

7

8

9 Understanding

10

Aldermore

H2 2019 H1 2019

Friendly

Aviva

H2 2019 H1 2019

Traditional

Bank of Ireland

H2 2019 H1 2019

1

2

3

4

5 Slow

6

7

8

9

10

Barclays

H2 2019 H1 2019

Easy

Bluestone

H2 2019 H1 2019

Fine

Summary Version

Summary Version

Contents

Part 1

Part 2

4 Executive summary

7 Lender league tables

16 What matters most to intermediaries?

17 What’s behind the decision to recommend a lender?

21 Who’s winning the technology race?

22 How will technology impact brokers in the next 24 months?

24 Heatmaps for CRM, affordability, criteria & product sourcing solutions

28 Conclusion

29 Lender SWOT analysis and heatmaps

83 Brand analysis (42 lenders as listed above)

91 Methodology

93 About Smart Money People

13 Sector insight: Banks, Building Societies, Specialist & Lifetime lenders

CRM: 360 Dotnet, eKeeper, Intelligent Office, Smartr365, The Key & Xplan Affordability: BrokerSense & MBT AffordabilityCriteria Sourcing: Criteria Hub, Knowledge Bank & SmartrCriteriaProduct Sourcing: Air Sourcing, IRESS, Mortgage Brain & Twenty7Tech

A: Accord, Aldermore, Atom Bank & AvivaB: Bank of Ireland, Barclays, Bluestone & BM SolutionsC: Canada Life, Clydesdale Bank & Coventry Building SocietyF: Fleet Mortgages G: GodivaH: Halifax, Hodge Lifetime & HSBC UKJ: JUSTK: Kensington & Kent RelianceL: Leeds Building Society, Legal & General & LV=M: Metro Bank & more 2 LifeN: Nationwide Building Society, NatWest Newcastle Building Society & Nottingham Building SocietyP: Paragon Bank, Pepper Money, Platform, Precise, Principality Building Society & Pure RetirementS: Santander, Scottish Widows & Skipton Building SocietyT: The Mortgage Lender, The Mortgage Works & TSBV: Virgin MoneyW: West Bromwich Building Society

Summary Version


Executive summary

Introduction

The Mortgage Lender Benchmark H1 2020 is an independent research study that analyses what’s working well, and what isn’t, when it comes to broker satisfaction with mortgage lenders.

Our aim is to provide lenders with actionable insight that can help them deliver better intermediary propositions. This will in turn help to make the mortgage journey better for customers.

Market specific findings

• The overall satisfaction of brokers with the lenders they do business with is 82.7%, up from 81.1% in H2 2019, and the highest score reported since tracking began in H2 2018

• 5 of the 42 lenders appearing in our league table and SWOT analysis pages receive overall satisfaction ratings of 90% or higher, up from just 2 in H2 2019

• The NPS of lenders, a measure of loyalty, ranges from +73.1 to -40.0, with the average across all lenders increasing to +30.8

• Satisfaction with product transfers soars to 86.2%, up from 83.2% in H2 2019

• Speed, relationship managers and customer service all attracted more positive feedback

• Broker sentiment around product range, clarity of criteria and communication has declined, with poor communication playing a key role on the NPS of many lenders

• Building societies remain the highest rated sector, although performance is largely flat, with banks and particularly specialist lenders on the rise

• 4 of the 5 highest rated Buy To Let Lenders are building societies

• When it comes to lifetime lenders, it’s clear that brokers are finding it harder to determine both the max. loan amount and product eligibility when compared to H2 2019

• Half of the highest rated online systems across the industry belong to lifetime lenders

Selected lender specific findings

Performance at more 2 life, consistently the UK’s highest rated lifetime lender, has improved

further.

Online systems remains the most talked about theme and this feedback is now all positive.

Clydesdale Bank emerges as the UK’s slowest lender, across all lender types.

The sentiment around process has declined further, with online systems now accounting for

20% of all broker feedback. 90% of this is negative.

• 38% of brokers believe that technology changes will have a high or very high impact on the mortgage industry over the next 24 months

• Brokers are increasingly using a range of technology solutions to assist them. And while they often view these as helpful, they also acknowledge significant limitations

• 77% of brokers believe that lending will recover to pre lockdown levels within 9 months

While headline scores have all improved, satisfaction with one case type is now the lowest

in the industry.

Summary Version


Executive summary

About the Mortgage Lender Benchmark

The Mortgage Lender Benchmark is a six-monthly research study run by Smart Money People, a review and research platform focused on financial services.

As part of this study, 467 intermediaries shared feedback on the last five lenders they’ve dealt with, meaning that 2,335 pieces of feedback form the basis of this report.

Our full report includes SWOT analysis, heatmaps and brand analysis for 42 UK lenders, spanning banks, building societies, specialist and lifetime lenders.

This aim of the Mortgage Lender Benchmark is to help lenders, regulators, investors and other interested parties better understand the service and propositions offered by UK lenders.

This feedback received includes the following:

• Overall satisfaction ratings

• Net Promotor Scores (NPS)

• Free text around what brokers like about lenders and what could be better, which is then mapped to 20 themes

• Ease of determining max. loan amount ratings

• Speed to process applications through to offer ratings

• Ease of determining product eligibility ratings

• Satisfaction with relationship managers ratings

• Lender communication ratings

• Brand personality analysis

Part 1 of the Mortgage Lender Benchmark delivers market insight while Part 2 focuses on lender specific insight via our SWOT analysis and heatmap pages. This edition also includes a dedicated Buy To Let league table and broker technology provider ratings and heatmaps.

467 brokers shared feedback on the last 5 lenders they’ve dealt with.

Press to date includes The Spectator,FT Adviser, Love Money, Mortgage Solutions,

Mortgage Finance Gazette, Mortgage Strategy, Mortgage Introducer, Best Advice &

Property Wire among others.

Feedback about 93 UK lenders, covering some 94.4% of mortgage volume (UK Finance).

2,335 pieces of in depth qualitative and quantitative analysis covering the 20 themes that

matter most to intermediaries.

Comprehensive and easy to digest analysis.

94%

Summary Version

The lock icon in this report signifies paid content. Our full report is available to all interested parties for £1,300 and includes the following:

• Full league table data (for all lenders)• SWOT analysis and heatmaps covering 42

lenders• Broker tech heatmaps

It is also possible to acquire all verbatim feedback (for all lenders) to enable further internal analysis and to arrange an in person briefing.


League tables: Banking firmsA key can be found on p.8

Ease ofdetermining

max. loan amount (%)

Ease ofdetermining

producteligibility (%)

Speed to processapplicationsthrough tooffer (%)

RelationshipManagers

(%)

Communication(%)

OverallRating

(%)

18

Net Promoter Score

16

11

14

15

75.017

13

12

10

9

82.48

7

79.06

5

1

2

4

3

Summary Version

This league table alsofeatures the following lenders:7 I Mortgage Lender Benchmark H1 2020: Summary

League tables: Building societies

Lowest ratedHighest rated

Overall rating increased New entrant +/- 1% change vs H2 2019

Key

Decreasing overall rating

Please note, the overall rating does not combine the various ratings left by brokers, it is a standalone rating.

Ease ofdetermining


Ease ofdetermining




(%)

OverallRating

(%)

Communication(%)

Net Promoter Score

80.4 84.76

5

2

3

4

8

82.97

9

69.810

11

1

Summary Version

This league table alsofeatures the following lenders:


League tables: Specialist & lifetime lenders

A key can be found on p.8

Specialist Lenders

Lifetime Lenders

Ease ofdetermining


Ease ofdetermining




(%)

OverallRating

(%)

Communication(%)

Net Promoter Score

1

3

6

7

1

5

4 77.9 64.2 83.8

2

3

2 84.0

4 74.0+20.0

5 82.7

8

Summary Version




Buy to let league table (new for H1 20)

This below league tables includes BTL feedback (commercial & residential) for lenders with more than 10 pieces of BTL feedback.

Before leaving feedback, each broker is asked to share details about the case they’re leaving feedback for.

Ease ofdetermining


Ease ofdetermining




(%)

OverallRating

(%)

Communication(%)

Net Promoter Score

83.1 81.5 70.8 84.6 75.4+15.478.55

84.6 75.4 61.5 67.7 60.0-30.870.811

83.2 76.0 59.2 84.3 70.4-4.075.27

85.1 82.4 84.8 81.9 78.7+42.785.63

90.2 85.9 79.3 78.5 80.7+50.087.82

75.5 71.8 63.6 79.0 73.6+4.578.26

75.310

71.4 71.4 51.4 78.5 70.0-21.474.39

80.0 75.0 73.3 89.0 75.0+25.083.34

70.9 70.9 58.2 72.7 70.9+18.274.58

1 88.7

A key can be found on p.8

Summary Version

This buy to let league table also features the following lenders:


Broker rated: H1 2020

Broker rated badges are available to help brokers identify top-rated firms across key areas, such as lending criteria.

A large amount of brokers participate in this study and our research has been featured widely, including in the following publications:

FT Adviser, The Spectator, Love Money, Mortgage Solutions, Mortgage Strategy, Financial Reporter, Mortgage Introducer, Mortgage Finance Gazette, Best Advice, Property Wire and of course

Smart Money People.

Best Bank

Best Lifetime Mortgage Provider

Great for Communication

If you’d like to access your badges please contact us using the details on p.28.

Best Buy To Let Lender

Great for Relationship Management

Great for Speed to Offer

Great for Lending Criteria

Great for Underwriting

Great for Online Systems

Best Adverse Credit Lender

Best Building Society Lender

Summary Version


Lender heatmaps

This question allows brokers to tell us what matters to them, in their own words, which helps us to understand the strengths and weaknesses of each lender.

The Mortgage Lender Benchmark asks brokers to ‘please tell us what you like about a lender, and/or what could be better.’

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

80%

83%

67%

75%

56%

83%

83%

40%

34%

75%

56%

100%

36%

72%

56%

18%

71%

74%

33%

82%

77%

86%

80%

100%

68%

79%

71%

37%

77%

86%

56%

0%

0%

67%

79%

67%

43%

68%

84%

92%

86%

87%

96%

41%

74%

40%

43%

83%

50%

50%

40%

88%

88%

0%

88%

100%

71%

63%

0%

64%

81%

80%

71%

88%

60%

71%

80%

100%

0%

100%

0% 0%

Heatmaps for 42 lenders can be found

within our SWOT analysis

pages.

0%

% of positive feedback for each theme

Amount of feedback for each theme


Ease of determiningmax. loan amount (%)

Ease of determiningproduct eligibility (%)

Speed to process appl.through to offer (%)

Relationship managers (%)

OverallRating (%)

Communication (%)

NetPromoter Score

Banks Building Societies Specialist Lenders Lifetime Lenders

Top level scores: All lenders

81.1 +26.3 82.9 81.2 74.1 79.6 77.1

Sector insight: Top level stats

Ease ofdetermining


Ease ofdetermining




(%)

Communication(%)

OverallRating

(%)

Net Promoter Score

H2 2019

H1 2020 H2 2019 H1 2020 H2 2019 H1 2020 H2 2019 H1 2020 H2 2019

The overall satisfaction of brokers with the lenders they do business with has increased to 82.7%, the highest score reported since tracking began in H2 2018.

Across all lenders, speed and satisfaction with relationship mangers have seen the greatest increases, and are largely responsible for the higher overall satisfaction levels.

• Building societies remain the most recommended lender type but performance is largely flat

• Satisfaction with banks has increased, with the average NPS up by 5.5 points

• Specialist lenders see the biggest increases overall, including a 7.8% increase in the satisfaction with relationship managers

• It’s a mixed bag for lifetime lenders, with brokers finding it harder to determining max. loan amount and product eligibility

82.7 +30.8 83.0 81.3 75.8 81.5 78.1H1 2020

Summary Version


66% 79% 54%

+ Rates+ Criteria- Communication- Accuracy & Consistency

All Lenders

59% 79% 53%

82% 88% 65%

69% 72% 36%

74% 46%

+ Customer Service+ Flexibility- Communication- Fees

+ Flexibility+ Criteria- Communication- Ease of application

66%

Sector insight: How do lender types differ?

People Product & Lending Process

H2 2019

Banks

Building Societies

Specialist Lenders

Lifetime Lenders

H2 2019

H2 2019

H2 2019

H2 2019

H1 202090% 81% 69%

H1 2020

H1 2020

73% 78% 55%

78% 60% 46%

H1 2020

72% 74% 41%

78%

H1 2020

77% 57%

Broker sentiment around people themes including customer service and relationship mangers has increased across all lender types. This increase is most marked across banks were it has increased to 73% (up from 59%).

Broker sentiment around product and lending has decreased slightly, with weaker feedback around product range and clarity of criteria largely due to the short term disruption of COVID-19. The sentiment around rates has also softened.

+ Customer Service+ Product Range- Communication- Clarity of Criteria



Summary Version


Sector insight: Satisfaction by case type

81.1 82.9 81.2 74.1 79.6 77.1

Ease ofdetermining


Ease ofdetermining




(%)

Communication(%)

OverallRating

(%)

Net Promoter Score

AllFeedback

First timebuyer

Satisfaction by case type

Satisfaction by key case characteristic

Self-employed

Adverse credit

Home mover

Product transfer

Remort-gage

BTL (residential)

BTL (commercial)

Brokers understand that not all cases are built equal. Complex cases will often require more back and forth with lenders.

And while most brokers expect complex cases to move at a slower pace and be subject to more ‘hand holding’ they’re not cutting lenders much slack, with satisfaction across BTL commercial cases being particularly low.

Home mover, product transfer and adverse credit cases see the greatest increases in broker satisfaction.

Below we’re sharing some of these findings to help lenders better understand what good looks like across the case types they focus on.

H2 19

78.1

H1 20

+26.3 81.5

H2 19H1 20

75.881.383.0+30.882.7

H2 19H1 20H2 19H1 20H2 19H1 20H2 19H1 20H2 19H1 20

Increase of 3% (or 3 points)

KeyDecrease of 3% (or 3 points)

Summary Version


What matters most to intermediaries?

BDMs

Customer service

Skills & knowledge

Accountability

People

Product & Lending

Process

H1 20: 2,335 pieces of feedback mentioned 3,698 items which have been mapped to the adjacent 20 themes.

The themes and sentiment behind our intermediary feedback

Key

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


200 10

Speed to completion, online systems and ease of application received the most feedback from brokers in this edition. Less feedback was received about criteria which is now the fourth most commented upon theme, but broker sentiment remains on par with H2 2019.

And while overall broker satisfaction has increased, poor communication is a growing problem for many lenders. Communication is now among the top five most commented on themes and 57% of all communication feedback received in this edition is negative.

% feedback for each theme

Brokers talking about BDMs and customer service are increasingly positive about these areas.

Sentiment around product range has weakened, but only slightly.

Brokers are commenting more positively about lender speed.

The sentiment around communication has deteriorated further, with COVID-19 having an impact.

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

H1 20H2 19

Lowest ratedtheme

Highest rated theme

More brokers reported “unclear criteria.”

Summary Version


What’s behind the decision to recommenda lender?

The themes promoters talk about and the impact of each theme

Being recommended by intermediaries matters, particularly in a competitive market. But while brokers often talk a lot about themes like speed and online systems, what really sits behind whether they’re likely to recommend a lender or not?

In the below table, we’ve analysed what brokers that are recommending the lender they’ve left feedback for had to say. Each theme is ranked by both the volume of feedback it has attracted (ranking by volume) as well as how strong an impact it’s having on the overall likelihood of a broker to recommend a lender (NPS).

Speed remains the most commented on theme by brokers recommending a lender, and it’s also having the strongest positive impact on this decision.

In this edition, great communication has risen to second spot in our ranking by impact. With 57% of all brokers commenting on communication leaving negative feedback, lenders deemed to have good communication (e.g. regular case updates, clear and upfront documentation requirements and who make it easy to discuss a case) were particularly likely to be recommended.

Product range is a newcomer to our top ten list, with brokers especially keen to recommend lenders that maintained a BAU approach during COVID-19.

Although not appearing in our top ten most commented on themes in H1 2020, lenders that were seen to have knowledgeable staff, and a good approach to valuations during COVID-19 were also particularly favored by brokers.

Speed to completion

Ease of application

Online systems

Criteria

Customer service

BDMs

Underwriting

Rates

Communication

Product Range

1

2

3

4

5

6

7

8

9

10

1

7

8

2

6

5

3

9

4

10

Rankingby volume

H1 2020

Rankingby impact

Speed to completion

Criteria

Online systems

Ease of application

Customer service

Underwriting

Rates

Communication

Flexibility

BDMs

1

2

3

4

5

6

7

8

9

10

4

6

3

10

1

8

5

9

2

7

Rankingby volume

H2 2019

Rankingby impact

The most talked about theme by brokers leaving an NPS of 9 or 10 for a lender

The theme generating the strongest positive sentiment

Summary Version


Feedback from intermediaries recommending the lenders they work with

The following page highlights some of the feedback shared by brokers that are actively recommending (promoting) a lender they’ve shared feedback about. The themes that detractors talk about can be found on p.19.

The choice of comments and the lenders highlighted below and on p.20 has no overall significance.

“Speed of processing is second to none! Ability to call in and

have income verified immediately is a market leader.

This case was received and offered within 24 hours.”

Speed to completion

“Accord have the ability to discuss with underwriters

direct and work with you for solutions.”

Underwriting

“Darlington are very flexible and will take a holistic approach to a clients

circumstances rather than a tick box exercise.”

Flexibility

“They lend to foreign nationals on HMOs. Most other things need work.”

Criteria

“Make use of technology where possible, making application process very

smooth. Streamlined underwriting &

documentation requirements are a plus.”

Ease of application

“Online application system is excellent, both for ease of application and document

upload.”

Online systems

“Straight forward process, know exactly what they want,

great rates and speed.”

Ease of application

“Brilliant local BDM who is always available to assist with

any difficult or tricky case.”

BDMs

“Great for affordability on shared ownership. Offer 95

and 100% LTV on buyers share with SO.”

Criteria

Summary Version


What’s behind the decision to not recommend a lender?

The themes detractors talk about vs. the impact of each theme

The top five themes most commented upon by brokers that are not prepared to recommend the lender they’ve left feedback for have not changed. These remain communication, speed, online systems, ease of application and underwriting.

But with the data collection window for this edition of the Mortgage Lender Benchmark taking place during the COVID-19 crisis, two new themes have entered the top ten: Flexibility and clarity of criteria.

Speed to completion

Underwriting

Communication

Ease of application

Online systems

Customer service


BDMs

Accountability

Rates

1

2

3

4

5

6

7

8

9

10

7

9

6

1

10

5

4

3

8

2

Rankingby volume

Rankingby impact

H2 2019

Communication

Speed to completion

Online systems

Ease of application

Underwriting


Flexibility

Customer service

Clarity of criteria

BDMs

1

2

3

4

5

6

7

8

9

10

7

8

2

5

3

10

9

6

4

1

Rankingby volume

Rankingby impact

H1 2020The most talked about theme by brokers leaving an NPS of 0-6 for a lender

The theme generating the strongest negative sentiment

Clarity of criteria is only the ninth most talked about theme by detractors (brokers leaving an NPS of 0-6 for a lender), but it’s having a much stronger impact on their decision to not recommend a lender.

With brokers often weighing up multiple themes when deciding which lender to place a case with, lenders can’t afford to ignore themes that don’t generate much feedback but have a strong impact on whether a broker is willing to recommend a lender or not.

Summary Version


Feedback from intermediaries not recommending the lenders they work with

“Their processing times can either be way high or really

quick. They don't have consistency.”


“Made it really difficult to do business with, requested over 18 months of bank statement

to underwrite one case.”

Ease of application

“They could advise that they have declined the case, without me waiting and

waiting, and then calling in to discover they have declined

the case. No communication.”

Communication

“They have closed phone lines currently due to COVID 19

which is incredibly frustrating most other lenders are

offering reduced staffing which is a lot better.”

Communication

“They could do the valuation early in the process rather

than at the end of the process, by which time they needed to request all new

documents from the client.”

Valuations

“Platform are very much working to criteria, no

flexibility towards lending and decision making. They always

in my opinion ask for more documents than needed

based on other high street lenders.”

Flexibility

“Criteria isn't as clear as it should be.”

Clarity of criteria

“Online application system is awful. Absolutely loads of

irrelevant questions, difficult to navigate. Just the worst! Their broker site is likewise appalling to find your way

around.”

Online systems

“Great products but unclear criteria.”

Clarity of criteria

“Calculator isn’t the simplest. Would prefer better

breakdown around income.”

Online tools

“Slow. If there is something quirky with a case it takes an

age.”

Speed

“Very pedantic underwriting at times especially around

remo for home improvement.”

Underwriting

Summary Version


Who’s winning the technology race?

Brokers talk a lot about how easy a lender makes it to do business. And while several themes are often at play, technology does of course have an important role.

Themes like online systems and tools, the availability of live chat, and how well lenders source are all commented upon by brokers when discussing the strengths and weaknesses of a lender.

In the grid below, we share the intermediary view on which lenders are leading the technology race, with a specific focus on online systems and tools.

Firm specific observations:

• TSB is the biggest improver, with broker sentiment around online systems and tools increasing to 93% (73% in H2 19)

• 90% of this feedback for Barclays was negative, closely followed by Leeds Building Society at 89%

• Brokers remain deeply frustrated by the lack of online systems at Aviva

• The lack of systems at some lifetime lenders appears to be delivering a halo effect for those that do. Half of the highest rated lenders around online systems and tools are lifetime mortgage providers

Which online systems and tools delight? And which require upgrading?

Online systems and tools are responsible for 14% of all feedback shared by brokers when discussing what they like about a lender and/or what could be better. Above we’ve included the 24 lenders with the most feedback about online systems and tools.

TopQuartile

Upper Middle

LowerMiddle

BottomQuartile

Summary Version


With feedback collected during COVID-19, many brokers had to quickly adapt their working practices and become more dependent on technology.

And while 18% of brokers believe that technology will have no or low impact on their business in the next 24 months, 38% told us that they believe it will have a high or very high impact.

What impact do you expect technology changes in the mortgage industry will have in the next 24 months?

How do brokers think technology will impact them in the next 24 months?

NoImpact %

LowImpact %

Medium impact %

HighImpact %

Very HighImpact %

DA

5 13 44All Brokers

Alongside sharing what impact they expect technology to have, we also asked brokers to tell us why they thought this. We’ve analysed the key themes below and shared some verbatim on the next page.

We also asked brokers to rate the technology providers they use across CRM, affordability, criteria and product sourcing. This analysis can be found on p.24-27.

AR

29 9

What’s behind this thinking?

1. Believe face-to-face is still key so can’t see themselves being replaced

2. Think that lenders will prioritise other issues in light of COVID-19

3. See themselves as largely shielded due to their focus on complex cases (low impact)

1) Believe that significant automation is likely to take place. In particular:

• Greater reliance on automated desktop valuations

• Increased use of e-signatures

2) View more system integrations as likely, in particular the ability to apply directly to lenders via sourcing systems

3) Can see more standardisation around underwriting requirements and an onus on lenders to ingest and assess more data, e.g. bank statements

This group of brokers believe technology will make their job quicker and easier. Some believe that this will help them to do more business, but the majority also acknowledge that more customers are likely to apply direct to lenders, and that lenders may be particularly keen to encourage execution-only mortgages in order to cut costs.

No / LowImpact

High / Very High Impact

Summary Version


Very High Impact

High Impact

Medium Impact

Low Impact

No Impact

Broker technology impact verbatim

“I have built relationships with clients. Most do not want to buy directly on the internet

especially as there is no differential in price.”

“Covid 19 means not much is happening.”

“It usually takes lenders a long time to implement changes

with technology.”

“Systems are already essential and it's clear those with good

systems get more business done; those without are almost

questioned as to why. User friendly systems are essential

mainly to help keep clients after their initial transaction.”

“I am a re-mortgage specialist. I suspect more direct engagement with clients and less via brokers.”

“Industry is very slow to change and be creative. Compliance would rather

run from a problem than find a solution. Our company is ahead of most in technology already. Most

technology the industry could use is already available, just not

embraced.”

“Open banking will have massive effects on the market, fraud will

be much more difficult but lenders who don't currently ask

for bank statements may not like what they see.”

“Tech is allowing processes to be streamlined, thus allowing brokers

to be more efficient & service more clients. This does have it's

drawbacks as some may abuse this to become prolific business writers

which can see customer service suffer as we've seen with robo

brokers.”

“Greater use of AVM model, and e-signatures becoming more

common in app & conveyancing process.”

“More of a push from lenders to provide borrowing directly to consumers via Execution-Only

channels.”

“A lot more things are moving to automated such as income

checks, valuations, processing offers meaning people aren’t

doing this as much physically and I think this will increase moving

forward.”

“Because AIP and application processes will continue to get faster, I also believe this will bring on more standardised

underwriting, facetime clients means less time out on the road and more time writing business

so all very positive.”

“There are enough people out there who still like the personal service rather than robo-advice.

Too early to see an impact on business!”

“Still need advisers as lending is never straight forward.”

“I don't envisage any significant changes in this respect,

especially as lenders will have other issues to prioritise.”

Summary Version


Broker tech: CRM

Brokers were asked to share which provider they used for their CRM. They were also asked to leave an overall rating and to tell us what they like about their provider and/or what could be better.

The following providers received sufficient feedback to be included in our analysis:

• 360 Dotnet• eKeeper• Intelligent Office• Smartr365• The Key (Mortgage Brain)• Xplan (IRESS)

0%

0%

100%

71All Providers 43% 18% 30% 88% 29%

-43% 20% 50% 86%

17% 0% 86% 0%

- -67% 0% 50% 0%

- -43% 11% 0% 50%

- -50% 100% 50% 100%

0% 50% 0% 50% 0% 50% 0% 50% 0% 50% 0% 50%

-50% 0% 50% 100%


-

“Too many manual tasks and doesn't flow well throughout the process. Not easy to make changes.”


Sample broker verbatim

Provider heatmaps

What do brokers have to say?

Brokers focus on the ease of use of CRM providers and functionality, with only one standing out by delivering a great client experience.

Issues with a lack of support (helpdesk/training) and reliability were particularly prominent among the two providers with the most feedback for functionality.

Alongside the full report, broker verbatim

for all CRMproviders is also

available.

“Good system for registration, tracking and

storing data. Fact find very useful. The front end could be improved for new leads

and follow ups.”

“Diary system is good. Too much repetition, does not fully integrate

with sourcing systems like other CRM's. Lots of bugs that take forever

to fix. Not consistent.”

“It would be helpful to have more options to cut down on criteria searching with each

company.”

“Client facing system is great. Otherwise a little inflexible.”

Amount of feedback for each

theme

In alphabetical order

Brokers were asked to share which provider they used for their affordability solution. They were also asked to leave an overall rating and to tell us what they like about their provider and/or what could be better.


• BrokerSense• MBT Affordability

0% 50%

78All Providers 29% 50%33%50%

25% 100%67%-

40% 0%0%50%


0% 50% 0% 50% 0% 50%

“More accurate when single applicant. Would like to only see my clients when I

go on rather than everyone else.Can never find old clients on the system.”

“It does what it says and is useful if all information is available. Goes into a lot of detail which can be a bit cumbersome, but

as each lenders affordability model is different I suppose it has to.”


theme



Overall brokers agree that the affordability tools are “helpful as a good starting point” and can provide a “basic guide.”

But brokers also report having to “double check” as they are “never 100% accurate” particularly for anything more than vanilla.


Provider heatmaps


for all affordabilityproviders is also

available.

Broker tech: Affordability solution



Brokers were asked to share which provider they used for criteria sourcing. They were also asked to leave an overall rating and to tell us what they like about their provider and/or what could be better.


• Criteria Hub (Mortgage Brain)• Knowledge Bank• SmartrCriteria (L&G)

56% 0% 75% 0% 100%

38% 0% 40% 0% 0%

16% 20% 79% 29% 40%

85All Providers 27% 14% 69% 24% 43%

0% 50% 0% 50% 0% 50% 0% 50% 0% 50%


“Not one of the most user friendly systems, but once you have navigated your way

around it and lost the first two searches you did it is not that bad!”

“It does what it says and is useful if all information is available. Goes into a lot of detail which can be a bit cumbersome, but

as each lenders affordability model is different I suppose it has to.”

“I like the layout and the multi criteria function but it is not 100% reliable and does not have every scenario available to search.”


Overall brokers agree that the criteria sourcing solutions are particularly helpful for “complex / challenging” cases but still only a “starting point” as information can often be “out of date.”

Alongside accuracy, brokers reported issues around search functionality making it hard to use for certain cases.

Provider heatmaps


theme



for all criteria sourcingproviders is also

available.

Broker tech: Criteria sourcing




Brokers were asked to share which provider they used for product sourcing. They were also asked to leave an overall rating and to tell us what they like about their provider and/or what could be better.


• Air Sourcing• IRESS• Mortgage Brain• Twenty7Tech


Most product sourcing solutions are described as very easy to use but accuracy is the key pain point for brokers.

Search functionality is another area that causes issues for brokers, e.g. not being able to filter out top slicing lenders on BTL cases.

100%

83All Providers 31% 43% 83% 22% 42% 67% 53%

17% 29% 79% 0% 40% 100% 57%

36% 85% 13% 0% 50% 25%

39% 0% 94% 50% 86% 80% 60%

100% 100% 50% 100% 0% 0% 100%


0% 50% 0% 50% 0% 50% 0% 50% 0% 50% 0% 50% 0% 50%


“User friendly but not always accurate sourcing as this can be delayed and sometimes sources products which aren't available based on info input e.g. Barclays will source for current DMP / recent defaults.”

“System is very comprehensive, Many providers and plans are sourced. One improvement is the interface. It could be more intuitive, sometimes it can be

overwhelming.”

“Not always accurate, also don't like the fact that you can’t put in

commitments which can change which lenders are best.”

“Sometimes pulls through products that it shouldn’t such as PT etc...when doing a

remortgage.”

Provider heatmaps

Alongside the full report, broker verbatim for all product sourcing

providers is also available.

Broker tech: Product sourcing



Conclusion

The data collection period for this edition of the Mortgage Lender Benchmark took place during COVID-19, and so it will be particularly encouraging for many to see that the overall satisfaction of brokers with the lenders they do business with has increased to 82.7%, the highest score seen since H2 2018.

Overall, broker sentiment around people themes including customer service and relationship managers has increased as has speed, which remains the most commented on theme by brokers.

Perhaps less surprisingly, the sentiment around product range, clarity of criteria and communication has declined, with communication particularly influencing the NPS of many lenders.

There is of course a wide gap in performance between the highest and lowest rated lenders, with just 5 achieving an overall rating of 90% or higher. 9 lenders receive a negative NPS which suggests that brokers will actively avoid placing business with them.

With satisfaction across all lenders generally increasing, it’s particularly noticeable that brokers reported finding it harder to determine both the maximum loan amount and product eligibility across lifetime lenders.

The aim of the Mortgage Lender Benchmark is to help lenders, regulators, investors, as well as other interested parties to better understand the service and propositions offered by UK lenders.

Our lender SWOT analysis, heatmap pages, and brand analysis will help readers better understand what makes 42 lenders really tick. What are their strengths and weaknesses? And how do they compare with other lenders? With rather big challenges ahead, we believe that better understanding the market will help lenders to gain a competitive advantage.

The next edition of the Mortgage Lender Benchmark will be delivered in December 2020. Which lenders will improve? And which will continue to deliver a poor intermediary experience? To discuss this study further, please contact the research team at Smart Money People using the details below.

@

0203 488 5075

[email protected] [email protected]

Michael Fotis & Nate Harwood

Summary Version


SWOT analysis & heatmaps

p. 30: Halifaxp. 31: NatWestp. 32: Santanderp. 33: Nationwide Building Societyp. 34: Heatmap analysis for the above 4 lendersp. 35: Barclaysp. 36: HSBCp. 37: Accordp. 38: The Mortgage Works (TMW)p. 39: Heatmap analysis for the above 4 lendersp. 40: BM Solutions p. 41: Leeds Building Societyp. 42: Virgin Moneyp. 43: Coventry Building Societyp. 44: Heatmap analysis for the above 4 lendersp. 45: Skipton Building Societyp. 46: Bank of Irelandp. 47: TSBp. 48: Platformp. 49: Heatmap analysis for the above 4 lendersp. 50: Precise p. 51: Clydesdalep. 52: Aldermorep. 53: Kensington Mortgages p. 54: Heatmap analysis for the above 4 lendersp. 55: Paragon Bankp. 56: Scottish Widowsp. 57: more 2 lifep. 58: Kent Reliance p. 59: Heatmap analysis for the above 4 lenders

p. 60: Godivap. 61: Avivap. 62: L&Gp. 63: The Mortgage Lenderp. 64: Heatmap analysis for the above 4 lendersp. 65: Atom Bankp. 66: Canada Lifep. 67: Pepper Moneyp. 68: Bluestonep. 69: Heatmap analysis for the above 4 lendersp. 70: West Bromwich Building Societyp. 71: Nottingham Building Societyp. 72: Principality Building Societyp. 73: Hodge Lifetimep. 74: Heatmap analysis for the above 4 lendersp. 75: Newcastle Building Societyp. 76: Fleet Mortgagesp. 77: JUSTp. 78: Pure Retirementp. 79: Heatmap analysis for the above 4 lendersp. 80: LV=p. 81: Metro Bankp. 82: Heatmap analysis for the above 2 lenders

The following section includes detailed SWOT analysis and heatmaps for 42 UK lenders presented in order of feedback volume:

Summary Version



Overall rating %






HalifaxAll

Banks

People

83.0

+30.8

82.7

75.8

81.3

78.1

81.5

AllLenders


SentimentHalifax’s

DNA

“Speed of processing is second to none! Ability to call in and have income verified immediately is a market leader.This case was received and offered within 24 hours.”

Intermediary feedback


H2 2019

A heatmap can be found on p.34 and the top 10 words to describe this lender’s brand are on p.86

Halifax

H1 2020

Alongside the full report, broker verbatim for all lenders is also available to purchase.

Summary Version



High LTV cases, 17% / Low LTV cases, 83%


NatWest“They are a little unclear sometimes on what they will do and not do. An application doesn't get looked at until documents

uploaded and nothing is chased either.”Intermediary feedback


Overall rating %






NatWest

People

NatWest’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Santander“They are not pro broker. Their retention is aggressive and

they are now back to dual pricing. They change my BDM every 6 months. Their service levels have been terrible the last 6

months.”Intermediary feedback


Overall rating %






Santander

People

Santander’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Nationwide Building Society“Good for FTBs, giving cash back on remos

and purchases, free surveys, high LTV,new jobs.”



Overall rating %






NationwideAll

Building Societies

AllLenders

People

Nationwide'sDNA


H2 2019



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps



Summary Version

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

80%

83%

67%

75%

56%

83%

83%

40%

34%

75%

56%

100%

36%

72%

56%

18%

71%

74%

33%

82%

77%

86%

80%

100%

68%

79%

71%

37%

77%

86%

56%

0%

0%

67%

79%

67%

43%

68%

84%

92%

86%

87%

96%

41%

74%

40%

43%

83%

50%

50%

40%

88%

88%

0%

88%

100%

71%

63%

0%

64%

81%

80%

71%

88%

60%

71%

80%

100%

0%

100%

0% 0%

0%




Barclays“Barclays have very attractive rates. However, their mortgage

application system is horrible to use. And it is very easy to make a mistake. Compared to over lenders this is by far the

hardest system to use.”Intermediary feedback


Overall rating %






BarclaysAll

Banks

People

Barclays’DNA


H2 2019


AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





HSBC“Really fast at getting applications through to offer, the

underwriters use common sense where needed. Call centres answer the phones very quickly.”



Overall rating %






HSBC

People

HSBC'sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Accord“Quick decision in principle process - allow a degree of CCJ's

that would fail credit score with other lenders.”Intermediary feedback


Overall rating %






Accord

People

Accord'sDNA


H2 2019


All Building Societies

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





The Mortgage Works“Online application system is excellent, both for ease of

application and document upload.”Intermediary feedback


Overall rating %






TMW

People

TMW’sDNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%



71%

83%

100%

86%

100%

82%

100%

60%

33%

90%

68%

63%

90%

100%

33%

50%

100%

100%

50%

100%

33%

100%

33%

100%

82%

83%

93%

57%

86%

100%

0%

86%

100%

100%

88%

100%

68%

50%

83%

76%

71%

79%

52%

73%

100%

50%

50%

86%

44%

0%

80%

100%

96%

50%

50%

23%

34%

23%

7%

10%

29%

11%

0%

0%

0%

0%

0%

Summary Version




BM Solutions“Fantastic for new customer deals but awful for existing

customers and more often than not due to rental stress tests the only option is to stay with BM.”



Overall rating %






BM Solutions

People

BM Solutions’DNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Leeds Building Society“Good criteria, especially with older clients but the

application is too long, system is clunky, AIP messaging system needs work, and processing time is very slow.

Criteria guide is not as clear as other lenders.”Intermediary feedback


Overall rating %






LBS

People

Leeds BS’DNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Virgin Money“The screen on their online system is too small and it's not a web

based system so you can only access any cases via the laptop/PC you applied on. Maybe spend less money on marketing and a bit more on the IT, don't need giant chocolate coins through the post as much as

an application system that is quick, easy, and works.”Intermediary feedback


Overall rating %






Virgin Money

People

Virgin Money’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Coventry Building Society“Great products, great BDM, decent and honest

lender. One of the good guys.”Intermediary feedback


Overall rating %






CBS

People

Coventry BS’sDNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


Lender heatmaps

0% 30% 0% 30% 0% 30% 0% 30%



75%

64%

100%

71%

89%

75%

58%

70%

0%

0%

100%

50%

50%

100%

25%

25%

100%

64%

21%

0%

100%

0%

100%

88%

100%

100%

90%

25%

100%

50%

53%

40%

50%

13%

0%

33%

0%

50%

33%

33%

100%

0%

33%

67%

82%

95%

38%

44%

67%

0%

100%

50%

100%

0%

100%

100%

100%

100%

100%

100%

50%

100%

100%

100%

100%

100%



Summary Version


Skipton Building Society“Skipton have a fantastic policy for buy to let top slicing.

are efficient, great BDM support, great pricing and policies. Affordability calculator could be shorter.”



Overall rating %






Skipton

People

Skipton BS’sDNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Bank of Ireland“The interactive message service they have is good as they monitor and respond regularly. They declined a case for me

that didn't make sense in my eyes and more clarification as to why this was a decline could have been given.”



Overall rating %






Bank of Ireland

People

Bank of Ireland’s

DNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





TSB“Probably the best system for applications. Soft DIP is good,

very user friendly system for documents uploads etc.”Intermediary feedback


Overall rating %






TSB

People

TSB’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Platform“Platform are very much working to criteria, no flexibility towards lending and decision making. They always in my

opinion ask for more documents than needed based on other high street lenders. They do eventually get a decision but not

always the quickest or easiest to deal with.”Intermediary feedback


Overall rating %






Platform

People

Platform’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps



BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

100%

50%

50%

100%

75%

75%

0%

25%

70%

40%

63%

50%

0%

100%

50%

50%

100%

0%

0%

50%

64%

90%

40%

100%

0%

50%

0%

100%

0%

43%

90%

71%

73%

80%

50%

50%

50%

100%

100%

100%

100%

100%

83%

64%

100%

73%

40%

57%

0%

100%

100% 100%

100%

100%

100%

100%

100%

0%


Summary Version



Precise Mortgages“As specialist lenders go they are easier to deal with than

most, forward thinking underwriting and very open criteria. They say 5 working days to review documents, but this is

usually only 3, but still a fairly long period of time.”Intermediary feedback


Overall rating %






Precise

People

Precise’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Clydesdale Bank“Systems are not the best, rates are ok and affordability is

competitive. They are a very good lender is terms of looking at 'the bigger picture' of a case but unfortunately their service

still lets them down.”Intermediary feedback


Overall rating %






Clydesdale

People

Clydesdale’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Aldermore“I had only used them once before this occasion and found them to be very helpful and quick. The underwriters contacted me personally to

clarify comments on the application which meant this application could be passed on and progressed much quicker. Would like to see

offers on Decision in Principles valid for longer than 1 month.”Intermediary feedback


Overall rating %






Aldermore

People

Aldermore’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Kensington Mortgages“They have good criteria for impaired clients, however

some of their criteria it's standard, and not made clear on their website, which causes issues post-application, which

could be easily avoided.”Intermediary feedback


Overall rating %






KensingtonAll

Specialist Lenders

People

Kensington’sDNA


H2 2019



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5

AllLenders





Lender heatmaps



BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

80%

100%

100%

67%

80%

100%

100%

20%

29%

13%

50%

0%

0%

0%

0%

100%

50%

67%

80%

0%

100%

71%

13%

21%

17%

0%

0%

50%

80%

33%

100%

100%

86%

100%

75%

50%

25%

60%

43%

80%

0%

100%

67%

0%

0%

50%

56%

0%

100%

20%

33%

0%

33%

100%

0%

50%

0%

0% 100%

0%

100%


Summary Version



Paragon Bank“Like - One of the best SPV company in the market. The new

system is a massive improvement. Great, knowledgeable BDM. Dislike - Large amount of documentation requested. Products not clear on the website. Criteria not clear on the website and

doesn't contain enough information.”Intermediary feedback


Overall rating %






Paragon

People

Paragon Bank’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Scottish Widows“I like that they can be more flexible than other Lloyds group banks

like Halifax, and obviously their offsets. Their intermediary website is absolutely atrocious to navigate, and my BDM does not have access to systems/cases which means they often cannot help. My BDM is

very good though in what she can do.”Intermediary feedback


Overall rating %






ScottishWidows

People

Scottish Widows’

DNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





more 2 life“Range of product options can be confusing as criteria differs

over products due to different funders.”Intermediary feedback


Overall rating %






People

more 2 life’sDNA


H2 2019


All Lifetime Lenders

more 2 life


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5

AllLenders




Kent Reliance“Helps when others are just reading their

textbook criteria.”Intermediary feedback


Overall rating %






Kent Reliance

People

Kent Reliance’sDNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps



BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

0%

100%

0%

100%

100%

100%

60%

100%

0%

100%

50%

0%

100%

86%

100%

50%

0%

100%

100%

80%

91%

100%

0%

100%

100%

100%

100%

75%

100%

0%

50%

50%

50%

17%

75%

100%

33%

100%

50%

100%

0%

50%

20%

0%

71%

67%

0%

50%

50%

0%

0%

Summary Version

50%




Godiva“Godiva (Coventry Building Society) offer extremely competitive products

with a relatively generous rental calculation. They have a very flexible criteria when it comes to income. Finally, the most beneficial part to Godiva

are that they are very quick and efficient in their underwriting process.”Intermediary feedback


Overall rating %






Godiva

Godiva'sDNA

H2 2019



AllLenders


H1 2020



Sentiment

Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Aviva“Household name that people know and trust can be

competitive when they want to be but not always. Sometimes difficult to contact and speak to the relevant person. Not

generally the slickest at admin.”Intermediary feedback


Overall rating %






AvivaAll

Lifetime Lenders

AllLenders

People

Aviva’s DNA


H2 2019



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




L&G“Good systems, fast for clean cases. Some poor valuation

decisions. Too many quick rate changes.”Intermediary feedback


Overall rating %






L&G

People

L&G’s DNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




The Mortgage Lender


Overall rating %






The Mortgage

Lender

All Specialist Lenders

People

The Mortgage Lender’s DNA


H2 2019

“Initially they were clear, in terms of what they needed, but as usual requests for information were patchy as the case

progressed. It took a while but eventually the case got over the line.”



AllLenders


Sentiment

H1 2020

-


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps



BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%

Summary Version

0% 30% 0% 30% 0% 30% 0% 30%

80%

100%

100%

67%

80%

100%

100%

20%

29%

13%

50%

0%

0%

0%

0%

100%

50%

67%

80%

0%

100%

71%

13%

21%

17%

0%

0%

50%

80%

33%

100%

100%

86%

100%

75%

50%

25%

60%

43%

80%

0%

100%

67%

0%

0%

50%

56%

0%

100%

20%

33%

0%

33%

100%

0%

50%

0%

0% 100%

0%

100%


Atom Bank“Good system and easy to deal with.

My customers like them too!”Intermediary feedback


Overall rating %






AtomBank

People

Atom’s DNA


H2 2019


All Banks

AllLenders


Sentiment


H1 2019

Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Canada Life“Online portal is good, underwriting is great. Willing to

consider many unusual properties.”Intermediary feedback


Overall rating %






Canada Life

People

Canada Life’sDNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




Pepper Money“Work on making your sales promises a reality: I was promised a straight to underwriter, manually underwritten case, what I got was a kafquesque back and forth where every answer was

followed by another request until the client was losing their mind.”



Overall rating %






Pepper

People

Pepper’s DNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Bluestone“Great non standard product range, super helpful broker

support, willing to listen and understand a clients circumstances.”



Overall rating %






Bluestone

People

Bluestone’s DNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Lender heatmaps



Summary Version

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%0% 30% 0% 30% 0% 30% 0% 30%

80%

100%

100%

67%

80%

100%

100%

20%

29%

13%

50%

0%

0%

0%

0%

100%

50%

67%

80%

0%

100%

71%

13%

21%

17%

0%

0%

50%

80%

33%

100%

100%

86%

100%

75%

50%

25%

60%

43%

80%

0%

100%

67%

0%

0%

50%

56%

0%

100%

20%

33%

0%

33%

100%

0%

50%

0%

0% 100%

0%

100%


West Brom Building Society“Their systems are so antiquated. Really

lovely people who try to help but I honestly will avoid.”



Overall rating %






The West Brom

The West Brom’sDNA

H2 2019



AllLenders


H1 2020



Sentiment

Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Nottingham Building Society“They are willing to look beyond the

ordinary and are always willing to lend. Process is a bit clunky but apart from that

happy with everything.”Intermediary feedback


Overall rating %






PeopleThe

Nottingham's DNA


H1 2020



AllLenders

The Nottingham


Sentiment


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Principality Building Society“Very easy application system, excellent broker support, fantastic for those who

may not fit standard high street lenders.”Intermediary feedback


Overall rating %






Principality

People

Principality’s DNA


H2 2019



AllLenders


Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Hodge Lifetime“Mediocre products, T&Cs not very competitive Still

in 20th century, no online KFI or applications and they take forever to respond to queries...if at all.”



Overall rating %






Hodge

Hodge’sDNA

H2 2019



AllLenders



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




Lender heatmaps



Summary Version

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%0% 30% 0% 30% 0% 30% 0% 30%

80%

100%

100%

67%

80%

100%

100%

20%

29%

13%

50%

0%

0%

0%

0%

100%

50%

67%

80%

0%

100%

71%

13%

21%

17%

0%

0%

50%

80%

33%

100%

100%

86%

100%

75%

50%

25%

60%

43%

80%

0%

100%

67%

0%

0%

50%

56%

0%

100%

20%

33%

0%

33%

100%

0%

50%

0%

0% 100%

0%

100%


Newcastle Building Society“Great for being able to get hold of however not always easy to determine what they will count as expenses for affordability, seems to

be down to underwriter discretion, so not always the same as the mortgage calculator.”



Overall rating %






Newcastle

Newcastle’sDNA

H2 2019



AllLenders



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





Fleet Mortgages“Asked for a lot of info and once processed, asked for more.

Pre-Sales underwriting was helpful, although I had to highlight their response when submitting the case.”



Overall rating %






Fleet Mortgages

Fleet’sDNA

H2 2019



AllLenders



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5





JUST“Good range of products. Need online applications. Need to improve

back office processes.”Intermediary feedback


Overall rating %






Just

Just'sDNA

H2 2019



AllLenders



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




Pure Retirement“Great BDMs and innovative products. Sometimes get a long list of requirements which are not always possible to answer

on application. Would have been better to know this earlier in the process.”



Overall rating %






Pure

Pure'sDNA

H2 2019



AllLenders



Sentiment

H1 2020


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5




Lender heatmaps

0% 30% 0% 30% 0% 30% 0% 30%



100%

100%

100%

100%

80%

0%

100%

67%

33%

100%

0%

100%

0%

50%

100%

100%

100%

100%

0%

0%

100%

100%

100%

100%

50%

100%

0%

100%

100%

50%

0%

100%

100%

0%

100%

100%

67%

100%

100%

0%

0%

0%

50%

0%

33%

100%

100%

0%

Summary Version

BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


0% 30% 0% 30% 0% 30% 0% 30%0% 30% 0% 30% 0% 30% 0% 30%

80%

100%

100%

67%

80%

100%

100%

20%

29%

13%

50%

0%

0%

0%

0%

100%

50%

67%

80%

0%

100%

71%

13%

21%

17%

0%

0%

50%

80%

33%

100%

100%

86%

100%

75%

50%

25%

60%

43%

80%

0%

100%

67%

0%

0%

50%

56%

0%

100%

20%

33%

0%

33%

100%

0%

50%

0%

0% 100%

0%

100%


LV=“What I like: Extremely ethical. Provide a very personal service.

Easily contactable. Reliable. What could do better: Online portal {I understand that this is in the offing}.”



Overall rating %






LV=

People

LV=’s DNA


H1 2020



AllLenders


Sentiment


Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5






Metro Bank“I normally don't put cases with Metro if it wasn't for BDM

Jade Stroudely - she is very professional and helpful and doesn't frown when the cases are quirky and returns calls

messages very promptly.”Intermediary feedback


Overall rating %






Metro

People

Metro’s DNA


H2 2019


All Banks

AllLenders


Sentiment

H1 2020



Summary Version

83.0

+30.8

82.7

75.8

81.3

78.1

81.5


BDMs

Customer service

Skills & knowledge

Accountability

Product range

Rates

Criteria

Clarity of criteria

Fees

Proc fees

Flexibility

Underwriting

Ease of application

Speed to completion

Valuations

Legals

Communication

Online systems

Online tools


Lender heatmaps

0% 30% 0% 30%



100%

100%

0%

0%

100%

0%

100%

0%

50%

50%

0%

0%

100%

100%

0%

0%

Summary Version

50%




Brand analysis

We asked brokers the following question for each lender they chose to leave feedback for:

If you met (lender name) at a party, please describe its personality in 3 words.

We asked this question to understand more about how brokers view each lender’s brand.

The tables across the following pages playback the top 10 words used for each lender and compares this profile with that of the previous edition (published in December 2019).

p.84: Accord, Aldermore, Atom Bank, Aviva, Bank of Ireland & Barclaysp.85: Bluestone, BM Solutions, Canada Life, Clydesdale, Coventry Building Society & Fleetp.86: Godiva, Halifax, Hodge Lifetime, HSBC, Just Retirement & Kensingtonp.87: Kent Reliance, L&G, Leeds Building Society, LV=, Metro Bank & more 2 lifep.88: Nationwide BS, NatWest, Newcastle BS, Nottingham BS, Paragon Bank & Pepper Moneyp.89: Platform, Precise, Principality BS, Pure Retirement, Santander & Scottish Widowsp.90: Skipton BS, The Mortgage Lender, The Mortgage Works, TSB, Virgin Money & West Bromwich BS

Summary Version



Accord

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Approachable

10

Aldermore

H1 2020 H2 2019

Expensive

Aviva

H1 2020 H2 2019

1

2

3

4

5 Missing

6

7

8

9

10

Bank of Ireland

H1 2020 H2 2019

Helpful

Barclays

H1 2020 H2 2019

Difficult

Atom Bank

H1 2020 H2 2019

Modern

Summary Version



Bluestone

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Attractive

10

BM Solutions

H1 2020 H2 2019

Quick

Canada Life

H1 2020 H2 2019

Quirky

Clydesdale

H1 2020 H2 2019

1

2

3

4

5 Intense

6

7

8

9

10

Coventry BS

H1 2020 H2 2019

Honest

Fleet Mortgages

H1 2020 H2 2019

Rude

Summary Version



Godiva

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Pleasing

10

Halifax

H1 2020 H2 2019

Quick

Hodge Lifetime

H1 2020 H2 2019

Lazy

HSBC

H1 2020 H2 2019

1

2

3

4

5 Efficient

6

7

8

9

10

JUST

H1 2020 H2 2019

Faithful

Kensington Mortgages

H1 2020 H2 2019

Quirky

Summary Version



Kent Reliance

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Distant

10

L&G

H1 2020 H2 2019

Fun

Leeds BS

H1 2020 H2 2019

Slow

LV=

H1 2020 H2 2019

1 -

2 -

3 -

4 -

5 Wise -

6 -

7 -

8 -

9 -

10 -

Metro Bank

H1 2020 H2 2019

Rubbish

more 2 life

H1 2020 H2 2019

Easy

Summary Version



Nationwide BS

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Competitive

10

NatWest

H1 2020 H2 2019

Reliable

Newcastle BS

H1 2020 H2 2019

Patient

Nottingham BS

H1 2020 H2 2019

1 -

2 -

3 -

4 -

5 Small -

6 -

7 -

8 -

9 -

10 -

Paragon Bank

H1 2020 H2 2019

Strict

Pepper Money

H1 2020 H2 2019

Obstructive

Summary Version



Platform

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Dull

10

Precise

H1 2020 H2 2019

Quirky

Principality BS

H1 2020 H2 2019

Evolving

Pure Retirement

H1 2020 H2 2019

1

2

3

4

5 Fun

6

7

8

9

10

Santander

H1 2020 H2 2019

Helpful

Scottish Widows

H1 2020 H2 2019

Nice

Summary Version



Skipton BS

H1 2020 H2 2019

1

2

3

4

5

6

7

8

9 Quirky

10

The Mortgage Lender

H1 2020 H2 2019

Slow

The Mortgage Works

H1 2020 H2 2019

Helpful

TSB

H1 2020 H2 2019

1

2

3

4

5 Open

6

7

8

9

10

Virgin Money

H1 2020 H2 2019

Quick

West Bromwich BS

H1 2020 H2 2019

Pedantic

Summary Version


Methodology

About the Mortgage Lender Benchmark

The Mortgage Lender Benchmark is an independent research study conducted by Smart Money People every six months.

All feedback was received via an online survey, and was collected between the 8th April 2020 to the 3rd May 2020.

A mix of qualitative and quantitative responses were received.

About the sample population

A total of 467 intermediaries completed the survey. Each intermediary was asked to leave feedback on ‘the last 5 lenders you’ve tried to place a case with, whether successful or not’ and therefore 2,335 pieces of individual lender feedback were collected. The study did not attempt to restrict which lenders intermediaries could leave responses for, and hence feedback was received for 90 lenders. These intermediaries responded to our call to leave feedback and therefore the population is self-selecting.

A full list of lenders for which feedback was received can be found on p.92. This table also highlights how firms have been classified into lender types and the volume of feedback obtained for each firm. A number of banks that predominately focus on specialist lending have been classified in the ‘bank’ lender type.

Only qualified mortgage intermediaries were invited to complete the survey and feedback from 192 firms was received. Firms ranged in size from independent intermediaries to the largest intermediary firms in the UK. The table adjacent details how this breaks down by firm size. 40% of brokers completing the survey are directly authorised and 60% are appointed representatives.

The region of intermediaries completing the survey is also highlighted in the adjacent table.

Intermediary firm sizes

% Responses by region

Firm size No. of firms

>40 intermediaries 20

20-40 intermediaries 26

5-19 intermediaries 53

<5 intermediaries 114

Region % Responses

South East 21

London 18

North West 12

East of England 10

South West 8

Yorkshire & Humber 7

West Midlands 6

East Midlands 6

North East 4

Scotland 4

Wales 3

Northern Ireland 1

Summary Version


Methodology

Lenders included in this study

Lender name TypeFeedback volume

Accord Building Soc >50

Aldermore Bank 30-39

Atom Bank Bank 20-29

Aviva Lifetime 20-29

Bank of China Bank <5

Bank of Ireland Bank 40-49

Barclays Bank >100

Bath Building Society Building Soc <5

Beverley Building Society Building Soc <5

Bluestone Specialist 10-19

BM Solutions Bank >50

Buckinghamshire Building Society Building Soc <5

Cambridge Building Society Building Soc <5

Canada Life Lifetime 20-29

Catalyst Finance Specialist <5

Clydesdale Bank 30-39

Coventry Building Society Building Soc 40-49

Danske Bank Bank <5

Darlington Building Society Building Soc <5

Dudley Building Society Building Soc <5

Family Building Society Building Soc <5

Fleet Mortgages Specialist 10-19

Foundation Specialist 5-9

Furness Building Society Building Soc 5-9

Gatehouse Bank Bank <5

Godiva Building Soc 20-29

Halifax Bank >100

Hampshire Trust Bank Bank <5

Hanley Economic Building Society Building Soc <5

Harpenden Building Society Building Soc <5

Hinckley & Rugby Building Society Building Soc <5

Hodge Lifetime Lifetime 10-19

HSBC Bank >100

Interbay Specialist <5

Ipswich Building Society Building Soc 5-9

JUST Lifetime 10-19

Kensington Mortgages Specialist 30-39

Kent Reliance Bank 20-29

Keystone Specialist <5

L&G Lifetime 20-29

Landbay Specialist <5

Leeds Building Society Building Soc >50

Leek United Building Society Building Soc <5

LendInvest Specialist 5-9

LV= Lifetime 10-19

Lender name TypeFeedback volume

M&S Bank Bank <5

Market Harborough Building Society Building Soc <5

Masthaven Bank <5

Mercantile Specialist <5

Metro Bank Bank 10-19

Mint Specialist <5

Monmouthshire Building Society Building Soc <5

more 2 life Lifetime 20-29

MT Finance Specialist <5

Nationwide Building Society Building Soc >100

NatWest Bank >100

Newbury Building Society Building Soc 5-9

Newcastle Building Society Building Soc 10-19

Norton Home Loans Specialist <5

Nottingham Building Society Building Soc 10-19

Octane Capital Specialist <5

One Family Lifetime <5

Paragon Bank Bank 30-39

Pepper Money Specialist 10-19

Platform Bank 40-49

Precise Bank 30-39

Principality Building Society Building Soc 10-19

Pure Retirement Lifetime 10-19

Raw Specialist <5

Responsible Lending Specialist <5

Saffron Building Society Building Soc <5

Sainsbury’s Bank Bank <5

Santander Bank >100

Scottish Widows Bank 30-39

Shawbrook Bank Bank <5

Skipton Building Society Building Soc 40-49

Stafford Railway Building Society Building Soc <5

State Bank of India Bank <5

Swansea Building Society Building Soc <5

The Mortgage Lender Specialist 20-29

The Mortgage Works Building Soc >50

Tipton & Coseley Building Society Building Soc <5

Together Specialist 5-9

TSB Bank 40-49

United Trust Bank Bank <5

Vida Homeloans Specialist <5

Virgin Money Bank >50

West Bromwich Building Society Building Soc 10-19

West One Loans Specialist <5

Zephyr Homeloans Specialist <5

Summary Version


@

About Smart Money People

• The strengths and weaknesses of firms and products

• Net Promotor Scores (NPS)• Customer service ratings• Value for money ratings• Whether customers feel fairly treated, and why• Whether customers understand the product

details, and why• Whether customers feel that their information

is safe with firms

Smart Money People is the UK’s review and research platform focused on financial services. We collect unique customer and intermediary insight across thousands of financial firms.

Our dataset spans performance, regulatory and culture data points and is relied upon by a range of financial services firms, including banks, building societies and specialist lenders.

Adjacent is some of the data we capture.

0203 488 5075

[email protected] [email protected]

Michael Fotis & Nate Harwood

Our aim is to help firms better understand their customers, their competitors and the market, in order to build better businesses.

Summary Version


Mortgage Lender Benchmark H1 2020 Summary Version

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