New research out from Smart Money People, the financial services review site, has found that broker satisfaction with UK mortgage lenders has fallen to the lowest level recorded outside of the pandemic, as the market reacts to the cost of living crisis and turbulent economic climate of the second half of the year.
The results form part of Smart Money People’s twice-yearly Mortgage Lender Benchmark which dissects the state of the mortgage industry according to the views of brokers. The latest edition comprises feedback from over 751 mortgage brokers on 114 mortgage lenders.
Key findings:
- Overall broker satisfaction with lenders has fallen, down 1.9% to 79.3%, falling below 80% for the first time since H2 2020 (77.8%)
- Net Promoter Score (NPS) is down 5.8 points on H1 2022 at +21.1. Scores ranged from -54.5 to +59.3 for the lenders in the report
- Top broker rated lenders for H2 2022:
- Top bank: Halifax
- Top building society: The West Brom
- Top buy-to-let lender: Foundation Home Loans
- Top specialist lender: Foundation Home Loans
- Top lifetime lender: Canada Life
- Building societies are the top-rated sector for broker satisfaction for a ninth time
- Specialist lenders have broken their streak of improvement, with overall satisfaction down by 5.5% compared to H1 2022
- Broker ratings for lifetime lenders have seen the smallest change with overall satisfaction down by 1.1%, and have improved their rating for speed by 2.4%
- Broker satisfaction with relationship managers decreased by 1.1% and now stands at 77.8%
- Brokers are struggling to keep up to date with rapidly changing criteria and rates, with 43% relying on emails to keep updated with changes
Jacqueline Dewey, CEO of Smart Money People said: “The results we’ve published today shows a sharp drop off in brokers’ opinion following three editions of growth as UK lenders struggle to cope with the impact of the interest rate rises and turbulence caused by the ‘mini-budget’. Our analysis shows that broker satisfaction with mortgage lenders is now nearing the lowest recorded levels seen during the height of the pandemic.
“Brokers are frustrated by the situation they find themselves and their clients in, with constant changes and products being withdrawn after applications have been submitted. Our analysis has found brokers are craving some stability within the market, and that brokers need support from lenders – they need to be able to rely on and have confidence in lenders, and whilst processes adapt, communication remains key.”
The Net Promoter Score is a reflection of how likely brokers are to recommend a lender. It is essentially a measure of loyalty. The average score for all lenders within the benchmark decreased by 5.8 to +21.1, the second-lowest score recorded in the history of the Benchmark. The peak Net Promoter Score for all lenders was recorded at the start of 2020 at 30.8.
Specialist lenders have seen a considerable fall in their metrics following previously recorded improvements. Overall satisfaction has fallen by 5.5% to 75.0%, and their Net Promoter Score is down 24.6 points, to just +1.2.
Lifetime lenders, however, see the smallest change in overall satisfaction, down 1.1%, and their rating for speed has increased 2.4% to 73.8%, as they overtake the banks.
Now in its ninth edition, the Mortgage Lender Benchmark report features feedback from over 751 brokers on 114 lenders, with a detailed analysis on 51 lenders across banks, building societies, specialist lenders and lifetime providers, as well as their thoughts on the mortgage market in general.
Along with asking brokers to rate lenders on different aspects of their proposition, Smart Money People analyses the comments that brokers provide when asked what they like or what could be improved for each lender. These are mapped across 20 themes to give a rich insight into how each lender is performing. These are shared with subscribers to the report.