Transparency will boost service standards

Sarah Davidson is deputy editor of Mortgage Introducer

News that Abbey for Intermediaries is publishing statistics on its service standards is to be applauded. Not only should a daily update on how up to date AfI is in processing new mortgage applications, underwriting and document validation as well as what the average mortgage offer time is and how long it takes the lender to answer broker’s phone calls push the lender to improve its service, it’s helpful for brokers on a number of levels too.

Transparency is the key to competition and Abbey’s move should drag other lenders into the present, forcing them to publish these statistics if they want to compete on service. Nationwide, The Mortgage Works and Accord all publish some form of performance indicators. If every lender took a leaf out of this book it would be good news for standards across the board. If lenders refuse to be open about how long it takes them to answer a broker’s phone call or begin underwriting it begs the question, what are they hiding?

Secondly, it is also a boon for brokers wanting to improve their own levels of client service. Often clients aren’t bothered if a decision takes eight days or ten, they just want to know up front so they can plan. Brokers getting this information right and managing their clients’ expectations will be valuable in the process of convincing consumers that financial advice is a professional service, and one worth preserving.

Thirdly, a written record of Abbey’s service standards is an advantage to brokers from a compliance point of view. Brokers don’t just advise borrowers to take the cheapest rate, part of their knowledge and expertise is about choosing a lender that will treat the borrower well and process the deal as quickly as possible.

Under proposed regulation in the Mortgage Market Review brokers will have to prove that they advised their clients to take the most appropriate product. Of course lender service standards come into that equation but without a written account of service it could be unnerving for a broker to recommend a more expensive product from a “better” lender.

Abbey’s stats are the first move made by a lender to help brokers provide the Financial Services Authority with an audit trail on what up to now has been an openly subjective judgement.

A lot of lenders talk the talk on working with brokers. Abbey, Nationwide, The Mortgage Works and Accord have walked it. Question is, will others follow.