Value for money, an innovative range of products, industry experience – all the kinds of things that count for a lot when selecting a bridging loan provider. Nevertheless, the results of a recent survey would seem to suggest that more brokers than ever before are considering the overall reliability of lenders, when seeking financial products and services for their clients.
Specifically, 60% of brokers in the UK are viewing lender reliability as a crucial consideration.
The survey was carried out by representatives of United Trust Bank (UTB), which quizzed more than 150 brokers across the country regarding their opinions on reliability. When asked directly whether lender stability and reliability was important when placing new business, 60% stated that it was indeed an important factor.
A surprisingly high 36% of brokers said that stability and reliability wasn’t a factor, while 4% said that they were undecided.
Which would seem to suggest that while most brokers are taking an active interest in the reliability of the lenders they work with, more than one in three is doing no such thing. In this sector in particular, the importance of working with reliable and stable lenders is particularly high. Often operating as independent service providers without the established security of a major bank or lender, smaller lenders are naturally more prone to encountering difficulties than their conventional counterparts.
From the perspective of the broker, placing your business with unreliable lenders on the behalf of their clients does little to strengthen their own reputation and stature. From the perspective of the client, these are the kinds of debatable practices that can result in unnecessary delays, complications and difficulties obtaining the funds requested and promised.
“In uncertain times it’s natural that brokers and intermediaries want complete confidence that the lenders they recommend to their clients are going to deliver the funds and the service they’ve promised,” said United Trust Bank group managing director, Harley Kagan.
“Many brokers know from past experience that in challenging markets some lenders may try to change their credit decisions whilst others have difficulty delivering a prompt service or releasing funds on schedule,”
“It only takes one or two examples of a lender changing a deal for that to knock a broker’s confidence in the lender and the customer’s confidence in the broker.”
Common sense would therefore dictate that the only sensible approach is to work exclusively with brokers who prioritise lender stability and reliability accordingly. Which is something that should be made abundantly clear by the broker – particularly if asked directly by the client.
If unsure as to how the broker operates, be sure to ask as many questions as necessary to clarify their approach to lender selection. Should they fall into the alarmingly high 36% bracket that considers reliability to be unimportant, you might want to take your business elsewhere.