Industry in depth

Advisers should target societies

4 February, 2010

Gateway believes that smaller niche building societies have weathered the financial storm well and that feedback reveals a growing confidence amongst these societies that the corner may have been turned.

Traditionally the smaller building societies have not necessarily looked for increased distribution via intermediary networks and it’s fair to say that intermediaries did not focus on this sector due to a plethora of alternative product providers. However, there is now a greater willingness to lend than at any time over the past couple of years and brokers can and should benefit.

Marcus Radcliffe, managing director at Gateway, believes that now is the time for intermediary firms to look closely at this sector: “The smaller, more niche, societies we work with are becoming more open to controlled distribution outside of their geographical area. These products will typically be lower risk, low LTV products but there is still an opportunity for brokers to secure these deals for their customers.

“We work with a number of intermediary networks and thanks to our strong relationships with many of the smaller building societies we are seen as a trusted partner and as such are able to make the relevant introductions. People often talk about progress and exciting new opportunities and I believe that this new decade heralds many new opportunities for brokers. However, it’s important to recognise that new opportunities can come from old friends.”