When was the last time that you checked what your club offered? Are you really getting the best rates and the best service or are you just using that club because it’s what you’ve always done?
Sometimes it’s good to just stand back and have a look at where your business is, why you do what you do and examine if there is a better way of doing something. Holiday season is great for that, especially if we manage to get a break without laptop and smartphone. Good things to look at as a DA are: What level of proc fee do you receive, how much support do you get, are you getting the best rates for your clients, and how many exclusives do you have access to?
Let’s start by looking at how rewarded you will be for placing your mortgages through different clubs, just what level of proc fee can you expect to receive? Some clubs, such as TMA, will give you 100% of your proc fee on some mortgages keeping none for their own administration. If you are already a member of a club they may send you a direct communication, if not you will need to do your homework and visit your club’s website for up to date rates as you won’t usually hear about these sorts of deals from the press.
Knowing that you have access to a reliable help desk is also an important factor. The help you receive from your club help desk can be vital in getting your cases through so it’s important to know that the people you’re relying on are experienced. Do they know what they’re talking about? Have they been in the industry for some time? Can you always get through to them and what level of continuity do you get when you phone? Can you speak to the same person every time so that they know you, your business and your issue?
It’s also hugely irritating when someone says they are going to phone back and then they never do, so I always put a priority on someone phoning you back when they say they will.
In addition to the reactive support you should expect, some clubs also provide proactive support such as outbound calls to let you know about new rates, new lenders, new services and new criteria. Is this important to you and if so do you receive up-to-date communications in a timely way?
Rates are the thing that many DAs prioritise most highly: what rate can you offer your clients, how can you get an edge over another firm and how well will you be rewarded for setting this up?
Exclusives can be a tricky one to find out about as some lenders do not want to shout about who they are supporting with exclusive deals, so the best way to find out what exclusives the different clubs have is to check the sourcing systems and other online systems.
Typically it is not the so much how large the mortgage club is but how large and influential its parent company is that influences the number and the quality of exclusives, so look at whether your club has wider buying power to secure the deals that you need.
If you are thinking of using another club, often a call to that club will answer most of the questions above: you will hear directly how helpful they are, you will experience what level of support you are likely to get when you put your business their way, you can sniff out what level of rates they have on offer and see just how much of the proc fee they are willing to return to you. After all it’s always good to get a taste of what you are likely to experience were you to use that club on a more regular basis.
Finally, see how all of this fits with your business priorities and values. You need a club you can work with that fulfils the needs of your business and your clients.
Karen Hedges is mortgage manager for TMA and First Complete