Brokers of large firms view brand as a more important factor than those from smaller firms when placing new business, research from Smart Money People has revealed.
The data was collated from Smart Money People’s Mortgage Lender Benchmark, which asked brokers how important brand is when deciding which lender to use for a customer’s mortgage.
Michael Fotis, founder of Smart Money People, said: “Lenders often wonder how important brand really is for brokers.
“Our analysis suggests that while for many it really doesn’t matter all that much, brokers at larger firms are much more influenced by brand than those at smaller firms.”
The Mortgage Lender Benchmark asked brokers to describe lenders’ personalities. ‘Easy’, a key indicator of good service, was the most used word for banks but was 10th place for lifetime lenders. The words ‘dull’ and ‘boring’ both appeared in the top 10 words used to describe specialist lenders.
Brokers were also asked about other features such as lenders’ criteria and speed as well as what they like about each lender and what could be improved.
Nick Sherratt, managing director of broker Mojo Mortgages, added: “We realise that brand is important to our customers and essentially this comes down to consumer confidence and trust.
“In a market that can be bewildering in terms of competition, rational choice can be difficult and brands often represent reassurance, consistency and status.”
The Mortgage Lender Benchmark is a twice-yearly research study designed to help lenders learn more about what brokers think.