Brokers base their decisions on rates

Pink Home Loans’ 1000 Index Survey shows rates drive brokers’ decisions when choosing which lenders or packagers to deal with.

The online survey was aimed at mortgage intermediaries and questioned 1,000 brokers on industry issues .

In stating which areas influence their decisions most when deciding which lender or packager to send a mortgage to, 25.9% of brokers say rate driven products while 21.55% say service.

Among other factors cited were criteria driven products, at 14.36%, and the relationship, at 10.5%. But proc fees influence only 4.97%.

Another question looked at which criteria are most important when determining the best product for a client.

The findings show 35.63% think the initial rate is the most important factor while 22.99% say true cost over five years is most important. The speed of the lender or packager was quoted by 13.79% of brokers.

Tony Jones, managing director of Pink, says it is quite a surprise to see initial rate coming out so high on the list of reasons why a broker decides which product is best for their client. He puts this down to customers wanting to keep down initial costs.

Jones says: “It is a surprise to see that 35.63% of brokers think the initial rate is most important when deciding which product is best for their client.

“But it is no great surprise to see that rates come out at the top and service second when deciding which lenders or packagers to use.

“It’s also good to see that the influence of proc fees on brokers’ decisions is so weak.”