Lender loyalty is shifting and human trust, access, and transparency are shaping business, says broker
In an era where product margins are thin and tech platforms promise more than they deliver, many brokers are re-evaluating what drives loyalty to lenders. According to John Marr, principal of Trusted Mortgage Advice, a directly authorised firm in the UK, the market has reached a point where responsiveness and integrity can be as important as pricing.
“You can usually find a reason not to use a lender,” Marr (pictured) said. “Unless the rate gap is too big, what can tip the balance with lenders is who actually picks up the phone and shows a willingness to engage and work with you.”
Getting on panel – or not at all
For established DA firms like Trusted Mortgage Advice, lender access is largely secured. According to Marr, that’s not the case for newer entrants. “Some firms, especially smaller or newly authorised ones, are still shut out of panels by lenders like Atom Bank and HSBC,” he said. “It’s often based on outdated risk perceptions.”
He recalls initial rejections from several mainstream lenders when his firm became directly authorised. “It took years to get agencies in place. Atom Bank still won’t deal with SME firms,” he notes. “They say DAs are too high risk, but the real collapses in this industry in the past, and financial/reputational damage that has come, is from failed networks.”
The CRM gap that won’t close
Despite the rise of fintech in mortgage distribution, Marr remains unimpressed by most digital tools offered to brokers. “There is no CRM system in the UK mortgage market right now that does what we need it to do,” he said.
After testing platforms from both startups and corporates, including a short-lived contract with Smart 365 and a failed negotiation with Acre (owned by Aviva), Marr said many offerings are trying to serve too many users with conflicting needs. “They’re built for scale, not for the realities of an industry with differing needs, especially the DA/SME market.”
He adds that attempts to plug the gaps with partial solutions often create more inefficiencies. “We’re still stuck with sellotape systems and workarounds,” he said. “The tech isn’t often intuitive, and it would appear that ‘real advisers’ have not been part of user testing pre-launch.”
When process trumps product
While brokers may start with the rate table, Marr said experience often determines whether a lender is chosen. “Barclays had a compelling rate recently, but it took me a lot longer to navigate their application portal. Portal/application processes with several lenders can be pretty challenging,” he said. “If it’s that painful, you then consider not using them unless you absolutely have to.”
Several large lenders come in for criticism. HSBC, he said, have had “very challenging” underwriting decisions of late. Several lenders are still running “antiquated systems” with little or no new investment visible. Meanwhile, newer platforms adopted by lenders like Coventry and Accord have offered some consistency.
“It’s not that brokers want bells and whistles,” Marr said. “They want systems that don’t break, are intuitive, and underwriters who apply common sense.”
Relationships, not rhetoric
Despite the rise of automation, Marr believes at least half of a broker’s loyalty is still shaped by human connection. “We’ll often consider lenders with pro-active BDMs who show a will to work with you and the client, even if they’re slightly more expensive,” he said. “You want to work with people who work with you and the customer.”
Yet he questions how many lenders understand this in practice. “Some BDMs don’t return calls. If the relationship doesn’t exist, neither does the loyalty.”
Brokers now regularly swap service updates through WhatsApp groups and social media, sharing real-time insights that can influence lender choices. “The websites tell one story. Broker networks tell another,” Marr said.
As for traditional service metrics like SLAs and turnaround times? “They still matter,” he said, “they can be the difference between placing a case with a particular lender.”
Marr’s take is clear: relationships remain central to broker decisions. “You want to work with people who want to work with you.”
