Stroud & Swindon is planning to launch a specialist subsidiary brand later this year targeting brokers with the promise to keep them in the loop over their clients’ financial situations.
S&S, which distributes more than half its mortgages via brokers, says the subsidiary will be technology-driven and will go even further than Accord Mortgages in developing ongoing relationships with brokers and sharing client data.
Paul Chafer, sales and marketing director at S&S, says: “We need to treat brokers as our partners rather than as competitors, and must look beyond using them to generate new business.
“What Accord is doing to keep brokers in the loop is fantastic and an important step, but we want to go further and plan to consult with brokers in the coming months before we decide how we can best do this.”
The society is looking for a head of intermediary lending to help it achieve this objective.
Chafer says: “The person we would like to fill this position will have the experience, knowledge and vision to develop and lead a proposition that will help build S&S.”
S&S has not yet settled on a name for its subsidiary and is undecided whether or not all its intermediary business will be handled via this channel. The subsidiary will be on balance sheet to begin with, although there is the potential for securitising in the future.
Linda Will, managing director of Accord, says: “It makes sense to have two defined channels as it allows you to target two audiences, providing e-commerce solutions and differentiated pricing to brokers while concentrating on the needs of customers through the branch network.
“There seems to be a growing acceptance among lenders that if you want your business to grow, you have to acknowledge that the broker is king.”
Mortgage Strategy’s In The Loop campaign calls on lenders to provide brokers with information about their clients’ financial circumstances, such as if they go into arrears. So far, Accord is the only lender to back the campaign.