Cross-selling is a thing of the past, isn’t it? That’s what lenders would have us believe. They depend on advisers for such a high proportion of their business that they wouldn’t do anything to undermine us.How hypocritical can they be? They may not call it cross-selling any more but it still goes on. For example, take buildings cover. I regularly advise my clients to take a lender’s buildings insurance policy. I do this because I am not an expert in this field and would never claim to have researched the best policies for my clients. I reckon a lender has a duty to ensure the cover it arranges fits its own criteria, such as whether it is sufficient to cover the rebuild cost stipulated by the valuer. Its cover will be reasonably competitive, at least for the time being. Whatever a lender may say publicly, I know it will process an application more quickly – and possibly more flexibly – if the client is taking its general insurance. If a client does this, they always have the option to re-broke the cover wherever they wish once their mortgage has completed. That’s fine by me. The client gets a quicker offer, they complete sooner and are a satisfied customer. And they’ll come back to me again next time because I’ve given them good advice and have not appeared greedy for commission. I can live with this, even if my boss might prefer me to sell more general insurance. But what I cannot accept is interference in the process from a lender. At application stage, I discuss the options with my clients and we agree a course of action. The lender should accept whatever decision is reached. Don’t get me wrong, a lender is perfectly entitled to ensure a client has adequate buildings insurance. But isn’t the solicitor supposed to check this? I don’t mind them asking my client to prove this as completion approaches. By this time, the client has their mortgage offer and is almost certain they will get the property they want or remortgage to the scheme they have chosen. But I object to my clients being called by a lender who is just checking what insurance the client is taking before an offer has been approved. Clients feel vulnerable at this stage of the process. They fear that not taking the lender’s cover will jeopardise their mortgage application and this call can be intimidating. Why can’t the lender call me? I am the adviser and the lender values me. I can answer the lender’s query. I may even give the lender the business if I haven’t finally dealt with it. I tell my clients I will handle all of the paperwork involved in their mortgage application, taking the hassle out of it for them. Being contacted by the lender directly undermines my relationship with my client and diminishes the so-called value that the lender places on their relationship with me. The value of intermediaries to lenders, it seems, is only paid lip service.
- Top trends
Christian Rolfe takes up the post of development manager providing sales coverage in the central-south region of the country.This most recent staff appointment at Amber promises to create closer connections with mortgage professionals in the South.Rolfe has gained a wealth of experience in the mortgage sector, having worked within both packaging and lending markets in […]
Coventry is improving its range of products for first-time buyers.The societys MOREgage product is a combined mortgage and unsecured personal loan that gives first-time buyers and movers the ability to not only purchase their house, but also the capacity to cover additional associated costs. With a high average house price making it increasingly difficult for […]
Mortgage Strategy’s monthly guide to the lead generation companies brokers could be doing business with. Justine Tomlinson looks at the options available to intermediaries
Figures from the Bank of England highlight an upturn in the amount of mortgage equity being withdrawn. The Bank’s estimate of mortgage equity withdrawal has risen to 8.7bn for Q2 2005 from 6.4bn from Q1 of the same year, an increase of 2.3bn. Dean Mirfin, business development director of Key Retirement Solutions, says people have […]
The past 12 months have been turbulent – just take a look at this chart of the FTSE 100 over the last year. There have been some points which I’m sure would have caused your clients some concern, and possibly even had them looking for an alternative investment with reduced volatility; perhaps without reducing their […]
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