Hello and welcome
Welcome to the inaugural Mortgage Finance Gazette Rated for Service Awards, in association with The Openwork Partnership. The Rated for Service Awards are based on a comprehensive annual survey that shines light on brokers’ assessments of lenders’ levels of service. Rated for Service recognises and commends lenders that have performed exceptionally well for brokers, providing lenders with an annual benchmark for service. Taking an extensive list of UK lenders, more than 800 brokers have scored them on their service for the period between June 2022 and November 2022.
Results & Analysis
In association with
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Lenders have been scored across five key service areas: strategic focus, product offering, sales support and communication, underwriting and case processing, and the use of technology. These scores have been used to determine which lenders have been Rated, and which have been Top Rated for service within one of three lender categories: mainstream, specialist and buy-to-let. Demonstrating outstanding service, eight mainstream lenders have achieved the Top Rated for Service honour, with a further eight commended as Rated for Service. Meanwhile, eight stand-out buy-to-let lenders are recognised as Top Rated for Service, with eight more Rated for Service.
The results are also collated and analysed in respect of the number of mortgage cases a broker submits on a monthly basis. The assessment period for this survey coincided with a particularly challenging time for lenders and brokers. The mortgage market was caught up in the economic storm that had resulted from former prime minister Liz Truss’s mini-Budget in September 2022. While still recovering from the pandemic, the market encountered yet more unprecedented times with over 40% of mortgage products pulled almost overnight at the peak of the disruption. Mortgage lenders’ service was tested as never before, which makes the achievements of those Top Rated for Service and Rated for Service all the more commendable.
I would like to say a huge thank you to the hundreds of brokers who took the time to complete the survey. Your views have been invaluable. Each lender recognised here has demonstrated a strong commitment to the intermediary mortgage market amid some very testing times. These accolades are both a recognition of this commitment and a cause for celebration.
Last, but by no means least, three specialist lenders have excelled and achieved the Top Rated for Service award, with a further two recognised as Rated for Service. The comprehensive analysis that accompanies the awards offers lenders a rare insight into brokers’ perceptions of their service. It is designed to assist lenders in shaping and forming their service strategies, enabling them to pinpoint any weaker areas. To add further insight, scores have been assessed also in relation to whether a broker is directly authorised or an appointed representative, giving lenders an understanding of how their service may be viewed differently by the two demographics.
‘Each lender recognised here has demonstrated a strong commitment to the intermediary mortgage market amid some very testing times’
Methodology
Openwork Comment
Summary
Disclaimer
Rebekah Commane
Group Editor
The inaugural lender panel comprised 39 providers across three categories, chosen to provide comprehensive coverage of the market. The lender panel can be viewed here. The survey covered five key assessment areas that were common to all three lender categories:
Click here for Lenders Panel
Category definitions
Mainstream
Respondents were asked to rate a minimum of two lenders per assessment area per category, with a score of 1 to 10 and with guidance provided on how to interpret the scale. The lenders’ average score per assessment area in each category was then totalled to provide a cumulative score per lender per category. This score was then ranked, highest to lowest, with the median of those scores providing the benchmark for each lender category. Lenders are recognised for their performance above this benchmark and for top-quartile performance in each category. Lenders above the benchmark are recognised by the Rated for Service award and lenders in the top quartile are recognised by the Top Rated for Service award.
1. Strategic focus 2. Product offering 3. Sales support & communications 4. Underwriting & case processing 5. Technology
This category applies to lenders that cater for BTL borrowers, both prime and with some adverse credit. This includes all corners of the BTL market, such as commercial, limited company, houses in multiple occupation and holiday lets.
Specialist
This category is aimed at lenders whose primary focus is residential mortgage lending to prime borrowers. This could include, but is not limited to, first-time buyers, the self-employed, home movers, remortgages and large loans. Lenders in this category may cater for ‘specialist’ demographics but the bulk of their business should derive from borrowers with a good credit rating.
Lenders in this category should predominantly offer mortgages to borrowers that mainstream lenders do not cater for, such as those with adverse credit and complex income. Lenders that offer residential bridging loans and second charge mortgages also fall into this category. Equity release products currently fall outside the scope of this survey.
BTL
Home
Openwork comment
Over the past few years, the service provided by lenders has been constantly under the spotlight. Whether it was the resource challenges they faced following the Covid-19 lockdowns, dealing with mortgage payment holidays, or the flood of purchase applications submitted to meet stamp duty holiday deadlines, lenders have been stretched time and time again. At Openwork we are hopeful that 2023 will see a more stable mortgage market, so now is a good time to explore the service lenders offer their intermediaries and provide some objective feedback.
What is great lender service? It’s a question every mortgage broker will have an opinion on. Yet, what delights one broker might be of marginal value to the next. Understanding broker priorities, recognising service excellence and identifying opportunities for improving industry standards are what the Mortgage Finance Gazette Rated for Service Awards are all about. Thanks to the 800-plus brokers who took the time to complete the survey, we’ve now got detailed feedback to help us work in partnership with the lenders to find and drive home improvements in service levels. For us, this was the ultimate aim of the Rated for Service Awards, so you can be assured that your voice will count and we will be pushing to implement progress.
Looking at the results, there are several areas of focus already, including:
• Ensuring intermediaries are front and centre of lender strategies. Market conditions have been challenging in recent months, but the survey highlights the degree to which the decisions taken by some lenders have simply failed to demonstrate understanding of the impact on brokers and their clients. Brokers tend to have long memories and lenders need to recognise that one poor strategic decision can do lasting damage to relationships.
• Delivering on technology. Those lenders rated strongly on their technology have generally come out well overall, whereas where technology is deemed poor the opposite is the case as it inevitably leads to broader frustrations for brokers.
• Reshaping operational infrastructure. Our world has changed post Covid-19 and all lenders have needed to re-engineer processes, often in short order. Technology is playing a part in this, but in many instances it’s about people and how well they are working together. Again, some lenders have transformed their ways of working effectively, but others are clearly struggling.
• Designing great products. Against a hugely volatile backdrop, product design has been a massive challenge for all lenders. But some have risen to the challenge, delivering consistently competitive products. We’re also seeing a greater appetite for innovation when it comes to helping key demographics, such as first-time buyers and older borrowers, and this is recognised in your feedback.
• Engaging with brokers. Achieving the optimal combination of online, telephone, web chat and face-to-face contact is not easy and the survey results indicate some lenders are achieving a successful balance more than others.
These are just a few of the hot topics emerging from the data, but there are plenty more. Hopefully, when we get to the next set of results, we will be able to point to specific changes lenders have made in response to the insights provided. Finally, can I offer my congratulations to all those lenders recognised for service excellence, and my thanks to everyone who took the time to complete the survey. Whether you are directly authorised or a member of a network and whether you are a small or huge producer, your feedback is massively appreciated and will be invaluable in helping to drive improvement, and in turn better outcomes for you and your clients.
The Openwork Partnership
Established almost 50 years ago, we are one of the UK's largest financial advice and investment networks and 100% owned by our advisers, partners and colleagues. Together, we are a partnership and financial advice is what we do – it’s our shared history. We work together to take care of client needs at every stage of their life. It’s a holistic approach that is grounded in our purpose – to make it easier for clients to face their financial future with confidence and optimism. We believe that having a colleague population as diverse as our clients provides the opportunity to capitalise on a wide variety of experiences, thinking and outlooks. From harnessing female talent to understanding the needs of the LGBTQ+ community, and recognising that the talent we recruit should reflect today’s society, we have a range of activities that are driving this culture.
Our educational and recruitment programmes have helped adviser and colleague numbers continue to grow. Today, our network is home to more than 4,500 advisers and 600 colleagues, and we’ve ranked in the top 100 of the Sunday Times ‘Best Companies to Work For’ for seven consecutive years. We have a unique community spirit that is epitomised by the way our advisers and colleagues come together to support their communities, through The Openwork Foundation’s fundraising, volunteering and grant programmes. The foundation has been at the heart of the business culture since 1981 and has donated over £20.8m to make a positive difference to vulnerable children and adults in the UK and abroad. Finally, we are a significant player in the mortgage market, having completed £27bn of lending in 2022.
Paul Shearman
To find out more, visit www.theopenworkpartnership.com
"We’ve got detailed feedback to help us work in partnership with lenders to find and drive home improvements in service levels"
"Those lenders rated strongly on their technology have generally come out well overall"
Mortgage, protection and GI proposition director The Openwork Partnership
Commending the best in BTL
The assessment window for the Mortgage Finance Gazette Rated for Service Awards coincided with a particularly trying time for the BTL sector, making the achievements of our award-winning lenders all the more remarkable.
The BTL market was one of the biggest casualties of former prime minister Liz Truss’s mini-Budget last year. Many lenders are still navigating the higher interest rate environment, which is pressing them to think of new, inventive ways to help investors. Of the 32 BTL lenders that were scored for these inaugural awards, eight received the Top Rated for Service accolade and eight won the Rated for Service award, with building societies or their subsidiaries dominating the former category. Mutuals accounted for five of the eight top-rated lenders, which was a striking achievement given just nine societies – including subsidiaries – were scored overall. There was also a strong showing from intermediary-only brands, which accounted for just under half of the award-winning lenders.
Rated and Top Rated BTL Lenders
Top Rated
Rated
Coventry Building Society The Mortgage Works Accord Mortgages BM Solutions Skipton Building Society NatWest Leeds Building Society TSB
HSBC Santander Bank of Ireland Aldermore Paragon Mortgages Fleet Mortgages Kensington Mortgages Virgin Money
Scores were quite consistent across the board, with Barclays again standing out for both its strong product offering but its less popular technology. BTL lenders in the upper quartile received their highest score for sales support and communication, with strategic focus scoring the lowest. Median scores were noticeably lower; yet, interestingly, strategic focus was the most highly rated area, with product offering the lowest. As well as being top rated for their specialist offering, both Aldermore and Bank of Ireland are rated for their BTL proposition. Kensington Mortgages is the only lender to make an impressive crossover between all three sectors, achieving Rated for Service in each one.
Rated and Top Rated Mainstream Lenders
Halifax Coventry Building Society Accord Mortgages Skipton Building Society Nationwide Building Society HSBC NatWest Leeds Building Society
TSB Santander Bank of Ireland Newcastle Building Society Principality Building Society Virgin Money Kensington Mortgages Platform Mortgages
It is a similar scenario in the Rated for Service category, with Newcastle Building Society, the 20th-largest lender, being recognised alongside Santander, the fourth largest. Among those lenders in the upper quartile, technology stood out, albeit fractionally, as the top-performing area, with underwriting and case processing leaving the most room for improvement. For the median score, strategic focus was the strongest area, with underwriting and case processing again the weakest. Overall, lenders that achieved the Rated for Service or Top Rated for Service honour performed consistently across all categories. However, the scores produced a few anomalies. Barclays, for example, was Top Rated for Service with its product offering but was let down by its technology score, meaning it missed out on recognition.
Often viewed as the backbone of the mortgage market, mainstream lenders are integral to keeping the sector moving and thriving. Given the turmoil the market and the wider economy endured in the second half of last year, lenders that achieved the Top Rated for Service or the Rated for Service accolade are to be particularly commended. Building societies and their subsidiaries performed especially well, with five receiving the Top Rated for Service award and two the Rated for Service award. This is a strong achievement given these organisations constituted just 12 of the 33 mainstream lenders. Size does not appear to be an over-riding factor in a lender’s service. Leeds Building Society, the UK’s 13th-largest lender in terms of gross lending, is Top Rated for Service alongside Halifax, which is part of the UK’s largest lender, Lloyds Banking Group.
Recognising the best mainstream lenders
Rated and Top Rated Specialist Lenders
Pepper Money Aldermore
Kensington Mortgages Precise Mortgages
credit to providing bridging and second charge solutions, specialist lenders increasingly are called on by brokers to fill the void left by mainstream lenders. Three such specialists have been recognised for their exceptional service, receiving the Top Rated for Service accolade, with two more achieving the Rated for Service award. A total of 11 lenders were scored, including one building society. With the exception of one, all recipients of the Top Rated for Service and the Rated for Service awards operated intermediary-only residential brands, which could in part explain their strong scores for strategic focus.
By a notable margin, strategic focus proved the best-scoring area for specialist lenders in the upper quartile, with product offering, underwriting and case processing the joint lowest. Strategic focus also produced the best median score, while specialist lenders’ products were once again identified as the weakest link. The high strategic focus score also reflects the commitment and support this cohort of lenders showed to the intermediary market during the turbulence of 2022, while the lower product score may reflect the challenges around pricing and rate withdrawals. Two lenders have been commended in both the specialist and mainstream domains, with Bank of Ireland top rated for its specialist service and rated for its mainstream proposition, while Kensington Mortgages was rated in both markets.
Often taking the lead with creative and innovative ways to help borrowers, specialist lenders have never been more needed as borrowers feel the strain from the inflated cost of living. From assisting borrowers with adverse
Specialist lenders leading the way
"Strategic focus proved the best-scoring area for specialist lenders in the upper quartile"
Rated and Top Rated Lenders – Strategic focus
Mainstream lenders Top Rated
Halifax Coventry Building Society Accord Mortgages Skipton Building Society Nationwide Building Society NatWest Leeds Building Society HSBC
TSB Santander Kensington Mortgages Newcastle Building Society Aldermore Principality Building Society Virgin Money Bank of Ireland
Specialist lenders Top Rated
Pepper Money Aldermore Kensington Mortgages
Precise Mortgages Bank of Ireland
BTL lenders Top Rated
Coventry Building Society BM Solutions The Mortgage Works Accord Mortgages NatWest Skipton Building Society Leeds Building Society Precise Mortgages
Santander TSB Aldermore Paragon Mortgages Fleet Mortgages Landbay Kensington Mortgages HSBC
A strong strategic focus is about not just broker exclusives but demonstrating a commitment to the intermediary market through words and deeds. Among the upper quartile of mainstream, specialist and BTL lenders, the highest score for strategic focus derived from mainstream lenders, with the lowest attached to BTL lenders. Specialist lenders, however, came top with the median score, while BTL lenders were again ranked lowest.
For mainstream lenders there did not appear to be a correlation between a strong strategic focus and an intermediary-only brand. When the strategic focus scores were examined in isolation, only one top-rated mainstream lender operated exclusively through intermediaries. This increased to half of all lenders when the top-rated BTL lenders were considered, while all top-rated accolades in the specialist market went to intermediary-only brands. Building societies and subsidiaries performed well once again, claiming over half of the top spots for both mainstream and BTL lenders. Across all markets, on the whole, lenders that were top rated or rated for strategic focus also received overall recognition. However, two BTL lenders and one mainstream lender were top rated or rated for strategic focus but failed to receive an accolade due to their scores in other categories.
The broker/lender relationship sits at the heart of the intermediary mortgage sector. This bond was never more tested than in the latter half of 2022 when market chaos ensued and both parties needed to work together to ensure positive client outcomes.
Recognising a strong strategic focus
"On the whole, lenders that were top rated or rated for strategic focus also received overall recognition."
Rated and Top Rated Lenders – Product offering
Nationwide Building Society NatWest HSBC Halifax Coventry Building Society Barclays Skipton Building Society Accord Mortgages
Leeds Building Society TSB Virgin Money Santander Newcastle Building Society Platform Mortgages Principality Building Society Clydesdale Bank
Bank of Ireland Precise Mortgages Aldermore
Pepper Money Kensington Mortgages
The Mortgage Works Coventry Building Society BM Solutions Accord Mortgages NatWest Skipton Building Society Barclays Leeds Building Society
HSBC Santander TSB Virgin Money Bank of Ireland Precise Mortgages Paragon Mortgages Aldermore
In the course of the Rated for Service Awards scoring period, the cost of funding for lenders soared, creating a challenging environment, to say the least. All the more reason to celebrate the fantastic achievements of those in the top rated and rated categories. The upper quartile of mainstream lenders led in product scoring, while the upper quartile of specialist lenders scored the lowest by quite some way. Mainstream lenders also claimed the highest median score, with BTL lenders scoring the lowest.
Product scoring among mainstream lenders produced notable fluctuations. One lender gained Rated for Service for its product offering alone, but featured in the bottom-five lenders when other key service areas were taken into account. Product offering proved to be the weakest area for specialist lenders in both the upper quartile and median score; perhaps explained by the testing market conditions following the mini-Budget. BTL product scores were also lower compared to other key business areas. However, BTL lenders in the top quartile performed significantly better than the overall median BTL product score, demonstrating the resilience and innovation of some of the sector leaders.
Competitive products form the basis of most lenders’ mortgage proposition, yet it does not come down to rate alone. An ageing population and the changing demographic of borrowers mean lenders increasingly are having to adapt and reshape their product ranges in response to shifts in demand.
Lenders excelling with product offerings
"Product scoring among mainstream lenders produced notable fluctuations"
Coventry Building Society Halifax Accord Mortgages HSBC Skipton Building Society TSB Nationwide Building Society Leeds Building Society
NatWest Santander Virgin Money Newcastle Building Society Pepper Money Bank of Ireland Principality Building Society Kensington Mortgages
Pepper Money Bank of Ireland Aldermore
Kensington Mortgages Kent Reliance
Coventry Building Society Accord Mortgages Skipton Building Society BM Solutions The Mortgage Works HSBC Leeds Building Society NatWest
TSB Bank of Ireland Santander Virgin Money Paragon Mortgages Kensington Mortgages Aldermore Fleet Mortgages
Rated and Top Rated Lenders – Sales support & communications
The mainstream lenders that were top rated or rated in the sales support and communications category matched the overall winners, albeit one lender was rated in this category but did not receive overall recognition. In general, lenders in the specialist space performed well in this area compared to their other key categories. Most specialists that were top rated or rated for sales support and communications matched those that received overall recognition. One, however, was rated for this category but scored lower for its underwriting and case processing, bringing down its overall score. Equally, one specialist lender was rated overall but not in the sales support and communications category.
sales support and communication, we asked brokers to score lenders based on their holistic support. Providing consistent, fast, reliable and clear responses to broker queries was not always easy during the scoring period, making it a noteworthy achievement for those lenders handed the top rated and rated honours. BTL lenders triumphed in this section, claiming both the highest median and upper quartile scores. Specialist lenders received the lowest upper quartile score, and mainstream lenders the lowest median score.
Good communication and sales support are vital to the smooth running of a mortgage market at the best of times, but even more so in periods of uncertainty. Searching for the very best in lender
Supporting brokers through the tough times
Halifax Coventry Building Society Accord Mortgages Skipton Building Society HSBC TSB Leeds Building Society Nationwide Building Society
NatWest Bank of Ireland Santander Virgin Money Principality Building Society Aldermore Newcastle Building Society Kensington Mortgages
Kensington Mortgages Foundation Home Loans
Coventry Building Society BM Solutions Accord Mortgages Skipton Building Society The Mortgage Works Leeds Building Society NatWest TSB
HSBC Santander Aldermore Virgin Money Bank of Ireland Kensington Mortgages Pepper Money Paragon Mortgages
Rated and Top Rated Lenders – Underwriting & case processing
Nevertheless, among the top-rated mainstream lenders there were some exceptionally high scores for underwriting and case processing. One lender’s score was the highest across all categories and domains; a sign that, despite the market disruption, some lenders still pulled out all the stops when processing applications. In the specialist sector, lenders that were top rated or rated for underwriting and case processing matched those that were rated overall, except one that received a Rated for Service score in this category and no other. Likewise, scoring for BTL was generally consistent, with the exception of a couple of lenders. One was rated in this category alone, highlighting that good underwriting may not go hand in hand with good service elsewhere.
The upper quartile of BTL lenders narrowly pipped the upper quartile of mainstream lenders to the highest score in this section; perhaps a demonstration of the versatile approach many adopted in the challenging market of late 2022. Specialist lenders, meanwhile, claimed the highest median score and mainstream lenders the lowest.
As borrower finances continue to be squeezed, lenders’ underwriting and case processing increasingly are under the spotlight. Nothing is more frustrating for brokers than a lender that is inconsistent and inflexible with its underwriting decisions, or never contactable.
Most flexible and consistent underwriting
"Despite the market disruption, some lenders still pulled out all the stops when processing applications."
Rated and Top Rated Lenders – Technology
With the exception of two lenders, all mainstream lenders that were either top rated or rated for their technology alone also received overall recognition. It was a similar outcome in the BTL market, with all lenders but two being either top rated or rated for technology and also receiving overall recognition. For specialist lenders, those either top rated or rated reflected those commended overall. Both mainstream and BTL lenders in the upper quartile performed well with technology compared to other key areas, which suggests the top lenders are making strong strides on their digital journey.
brokers and clients. So too can a lender’s ability to reliably and quickly inform brokers of product changes and withdrawals; something of critical importance last year. The Top Rated for Service and Rated for Service lenders have excelled in brokers’ eyes with their use of technology. The upper quartile of mainstream lenders scored particularly well, with their technology rating also the highest collective score across all categories. In contrast, the median score for mainstream lenders was the lowest across the technology spectrum; suggesting the quality of technology may differ significantly between lenders. Specialist lenders gained the lowest upper quartile score for their use of technology but the highest median score.
Technology has revolutionised the mortgage market, with lockdown propelling many lenders’ digital growth in recent years. An easy-to-use and reliable system can make the world of difference to
Lenders making the best use of technology
"Lenders that achieved the Rated for Service or Top Rated for Service honour performed consistently across all categories"
Rated lenders at a glance
Analysis by broker category
Rated mainstream lenders & analysis
Rated specialist lenders & analysis
Rated BTL lenders & analysis
Strategic focus
Product offering
Sales support & communications
Underwriting & case processing
Use of technology
Click for results
Click for lender performance in key service areas
For all data and licensing enquiries please contact: Steven.Ray@emap.com, or Aron.Marusic@emap.com
Overall Winners (table by catgegory)
some differences in the way the two demographics are served by lenders, either unknowingly or intentionally. ARs made up 52% of those who rated lenders’ service, with DAs accounting for 48%. In general, lenders performed better among DAs than among ARs, scoring higher overall in all three sectors: mainstream, specialist and BTL. In the mainstream market, lenders performed better in DAs’ estimation in three of the five key areas: strategic focus, sales support and communications, and underwriting and case processing. But they scored more strongly for ARs in the product and technology categories. However, the overall difference in AR and DA scoring was only fractional in this sector.
When mainstream lenders’ scores are broken down, in a few cases there is a notable difference between scores given to an individual lender by ARs and those given by DAs. Among lenders with the greatest discrepancy in scores, there does not seem to be a pattern, such as the size or type of lender. When specialist lenders’ scores are analysed, DAs rated lenders higher than their AR counterparts did, in all five key areas. The difference between DA and AR scores in the specialist market was noticeably greater than that for mainstream lenders. Again there was some DA/AR variability by lender and, while the biggest individual variable was recorded in the mainstream market, the difference in individual lenders’ scores was generally more pronounced in the specialist space. In some instances, lenders with the biggest scoring differential in the mainstream market achieved the same in the specialist market.
Theoretically, the service from lenders to both directly authorised (DA) brokers and appointed representatives (ARs) should be uniform. However, the scores given in the Mortgage Finance Gazette Rated for Service Awards highlight
Analysis of results - AR/DA
With BTL scores, DAs again rated lenders higher than ARs did in all five areas. The overall difference between the scores was not as sizeable as in the specialist market but was higher than for mainstream lenders. There were marked differences in BTL scores given to certain lenders by DAs and ARs. In most instances, these corresponded with the scores given in other markets. One lender, for example, scored significantly lower for its technology among DAs than among ARs in both the mainstream and BTL markets, potentially indicating a difference in the systems provided to each. However, this trend was not consistent across all sectors, with one lender scoring consistently among ARs and DAs for its mainstream service but not for its specialist service. Overall, the highest standalone DA score went to mainstream lenders for their sales support and communication, with the lowest DA score going to specialist lenders for their products. In contrast, the highest AR score went to mainstream lenders for their product offering, while the lowest score was given to specialist lenders’ underwriting and case processing.
Service scores
Scores based on submitted cases
Analysis of results by case size
Whether a broker submits just a couple of cases per month or more than 20, naturally there is an expectation that the service they receive from lenders should not differ. The Rated for Service scores raise interesting insights into how brokers rate lender service based on the number of overall cases they submit each month. Brokers who individually submitted between six and 10 cases per month made up the lion’s share of the scores, accounting for 38%, followed by 35% who submitted from one to five cases.
Brokers who submitted 11 to 20 cases represented 20% of participants, whereas those submitting 20-plus cases equated to 7% – the smallest group. In both the mainstream and BTL sectors, lenders received the lowest scores from brokers who submitted the fewest cases: between one and five per month. However, specialist lenders scored the lowest among those who submitted between 11 and 20 cases. The highest set of scores for mainstream lenders came from brokers who submitted 11 to 20 cases per month. BTL lenders scored the highest among brokers who submitted 20-plus cases, and specialist lenders were rated the highest among those who submitted between six and 10 cases.
When the mainstream scores are assessed in isolation, brokers who submitted the fewest cases gave the lowest score, notably lower than in the other three categories. Within those other categories the overall scores were more closely matched, suggesting the service received by those brokers was generally more consistent. For specialist lenders, the gaps in scores between the subsections were variable but not substantial. The contrast between the lowest and highest service scores was most distinctive in the BTL sector, with this section also producing the most individual lender fluctuations. Brokers who wrote the most mortgages per month – 20 plus – rated the lenders noticeably higher than did those who submitted between one and five cases.
It is a similar scenario in the Rated for Service category, with Newcastle Building Society, the 20th-largest lender, being recognised alongside Santander, the fourth largest. Among those lenders in the upper quartile, technology stood out, albeit fractionally, as the top-performing area, with underwriting and case processing leaving the most room for improvement. For the median score, strategic focus was the strongest area, with underwriting and case processing again the weakest. Overall, lenders that achieved the Rated for Service or Top Rated for Service honour performed consistently across all categories. However, the scores produced a few anomalies. Barclays, for example, was Top Rated for Service with its product offering but was let down by its technology score, meaning it missed out on recognition. Analysis by Natalie Thomas
"They are untouchable on all fronts including price, service and focus"
Broker comment
By a notable margin, strategic focus proved the best-scoring area for specialist lenders in the upper quartile, with product offering, underwriting and case processing the joint lowest. Strategic focus also produced the best median score, while specialist lenders’ products were once again identified as the weakest link. The high strategic focus score also reflects the commitment and support this cohort of lenders showed to the intermediary market during the turbulence of 2022, while the lower product score may reflect the challenges around pricing and rate withdrawals. Two lenders have been commended in both the specialist and mainstream domains, with Bank of Ireland top rated for its specialist service and rated for its mainstream proposition, while Kensington Mortgages was rated in both markets. Analysis by Natalie Thomas
Often taking the lead with creative and innovative ways to help borrowers, specialist lenders have never been more needed as borrowers feel the strain from the inflated cost of living. From assisting borrowers with adverse credit to providing bridging and second charge solutions, specialist lenders increasingly are called on by brokers to fill the void left by mainstream lenders. Three such specialists have been recognised for their exceptional service, receiving the Top Rated for Service accolade, with two more achieving the Rated for Service award. A total of 11 lenders were scored, including one building society. With the exception of one, all recipients of the Top Rated for Service and the Rated for Service awards operated intermediary-only residential brands, which could in part explain their strong scores for strategic focus.
“Good BDM support and underwriters look for reasons to do business, rather than to not do it”
"The BTL market was one of the biggest casualties of former prime minister Liz Truss’s mini-Budget last year"
Scores were quite consistent across the board, with Barclays again standing out for both its strong product offering but its less popular technology. BTL lenders in the upper quartile received their highest score for sales support and communication, with strategic focus scoring the lowest. Median scores were noticeably lower; yet, interestingly, strategic focus was the most highly rated area, with product offering the lowest. As well as being top rated for their specialist offering, both Aldermore and Bank of Ireland are rated for their BTL proposition. Kensington Mortgages is the only lender to make an impressive crossover between all three sectors, achieving Rated for Service in each one. Analysis by Natalie Thomas
The assessment window for the Mortgage Finance Gazette Rated for Service Awards coincided with a particularly trying time for the BTL sector, making the achievements of our award-winning lenders all the more remarkable. The BTL market was one of the biggest casualties of former prime minister Liz Truss’s mini-Budget last year. Many lenders are still navigating the higher interest rate environment, which is pressing them to think of new, inventive ways to help investors. Of the 32 BTL lenders that were scored for these inaugural awards, eight received the Top Rated for Service accolade and eight won the Rated for Service award, with building societies or their subsidiaries dominating the former category. Mutuals accounted for five of the eight top-rated lenders, which was a striking achievement given just nine societies – including subsidiaries – were scored overall. There was also a strong showing from intermediary-only brands, which accounted for just under half of the award-winning lenders.
“Excellent service for portfolio landlords, able to complete multiple applications at once, good pricing and quick service”
Mainstream lenders Top quartile
Second quartile
Specialist lenders Top quartile
BTL lenders Top quartile
For mainstream lenders there did not appear to be a correlation between a strong strategic focus and an intermediary-only brand. When the strategic focus scores were examined in isolation, only one top-rated mainstream lender operated exclusively through intermediaries. This increased to half of all lenders when the top-rated BTL lenders were considered, while all top-rated accolades in the specialist market went to intermediary-only brands. Building societies and subsidiaries performed well once again, claiming over half of the top spots for both mainstream and BTL lenders. Across all markets, on the whole, lenders that were top rated or rated for strategic focus also received overall recognition. However, two BTL lenders and one mainstream lender were top rated or rated for strategic focus but failed to receive an accolade due to their scores in other categories. Analysis by Natalie Thomas
The broker/lender relationship sits at the heart of the intermediary mortgage sector. This bond was never more tested than in the latter half of 2022 when market chaos ensued and both parties needed to work together to ensure positive client outcomes. A strong strategic focus is about not just broker exclusives but demonstrating a commitment to the intermediary market through words and deeds. Among the upper quartile of mainstream, specialist and BTL lenders, the highest score for strategic focus derived from mainstream lenders, with the lowest attached to BTL lenders. Specialist lenders, however, came top with the median score, while BTL lenders were again ranked lowest.
“They are an amazing lender that values our time. They are really easy to deal with, responsive and quick”
Product scoring among mainstream lenders produced notable fluctuations. One lender gained Rated for Service for its product offering alone, but featured in the bottom-five lenders when other key service areas were taken into account. Product offering proved to be the weakest area for specialist lenders in both the upper quartile and median score; perhaps explained by the testing market conditions following the mini-Budget. BTL product scores were also lower compared to other key business areas. However, BTL lenders in the top quartile performed significantly better than the overall median BTL product score, demonstrating the resilience and innovation of some of the sector leaders. Analysis by Natalie Thomas
Lenders excelling with product offering
“Product Transfer Rates have been competitive and show a true loyalty to their clients”
The mainstream lenders that were top rated or rated in the sales support and communications category matched the overall winners, albeit one lender was rated in this category but did not receive overall recognition. In general, lenders in the specialist space performed well in this area compared to their other key categories. Most specialists that were top rated or rated for sales support and communications matched those that received overall recognition. One, however, was rated for this category but scored lower for its underwriting and case processing, bringing down its overall score. Equally, one specialist lender was rated overall but not in the sales support and communications category. Analysis by Natalie Thomas
Searching for the very best in lender sales support and communication, we asked brokers to score lenders based on their holistic support. Providing consistent, fast, reliable and clear responses to broker queries was not always easy during the scoring period, making it a noteworthy achievement for those lenders handed the top rated and rated honours. BTL lenders triumphed in this section, claiming both the highest median and upper quartile scores. Specialist lenders received the lowest upper quartile score, and mainstream lenders the lowest median score.
Good communication and sales support are vital to the smooth running of a mortgage market at the best of times, but even more so in periods of uncertainty.
“BDM always stays in touch, easy to get a hold of and makes their website and criteria easy to understand”
Nevertheless, among the top-rated mainstream lenders there were some exceptionally high scores for underwriting and case processing. One lender’s score was the highest across all categories and domains; a sign that, despite the market disruption, some lenders still pulled out all the stops when processing applications. In the specialist sector, lenders that were top rated or rated for underwriting and case processing matched those that were rated overall, except one that received a Rated for Service score in this category and no other. Likewise, scoring for BTL was generally consistent, with the exception of a couple of lenders. One was rated in this category alone, highlighting that good underwriting may not go hand in hand with good service elsewhere. Analysis by Natalie Thomas
Accord Mortgages Coventry Building Society Nationwide Building Society TSB Halifax Leeds Building Society Skipton Building Society NatWest
HSBC Santander Bank of Ireland Principality Building Society Kensington Mortgages Aldermore Newcastle Building Society Pepper Money
Bank of Ireland Pepper Money Kensington Mortgages
Aldermore Precise Mortgages
The Mortgage Works Coventry Building Society Accord Mortgages BM Solutions Skipton Building Society TSB Santander Leeds Building Society
NatWest HSBC Bank of Ireland Aldermore Kensington Mortgages Landbay Principality Building Society Fleet Mortgages
With the exception of two lenders, all mainstream lenders that were either top rated or rated for their technology alone also received overall recognition. It was a similar outcome in the BTL market, with all lenders but two being either top rated or rated for technology and also receiving overall recognition. For specialist lenders, those either top rated or rated reflected those commended overall. Both mainstream and BTL lenders in the upper quartile performed well with technology compared to other key areas, which suggests the top lenders are making strong strides on their digital journey. Analysis by Natalie Thomas
“A very glitchy submission system. We've had several problems and had to get our BDM regularly involved”
ARs made up 52% of those who rated lenders’ service, with DAs accounting for 48%. In general, lenders performed better among DAs than among ARs, scoring higher overall in all three sectors: mainstream, specialist and BTL. In the mainstream market, lenders performed better in DAs’ estimation in three of the five key areas: strategic focus, sales support and communications, and underwriting and case processing. But they scored more strongly for ARs in the product and technology categories. However, the overall difference in AR and DA scoring was only fractional in this sector.
Theoretically, the service from lenders to both directly authorised (DA) brokers and appointed representatives (ARs) should be uniform. However, the scores given in the Mortgage Finance Gazette Rated for Service Awards highlight some differences in the way the two demographics are served by lenders, either unknowingly or intentionally.
Analysis by case size
When the mainstream scores are assessed in isolation, brokers who submitted the fewest cases gave the lowest score, notably lower than in the other three categories. Within those other categories the overall scores were more closely matched, suggesting the service received by those brokers was generally more consistent. For specialist lenders, the gaps in scores between the subsections were variable but not substantial. The contrast between the lowest and highest service scores was most distinctive in the BTL sector, with this section also producing the most individual lender fluctuations. Brokers who wrote the most mortgages per month – 20 plus – rated the lenders noticeably higher than did those who submitted between one and five cases. Analysis by Natalie Thomas
From the initial contact a mortgage broker makes with a lender, right through to completion day, the service that brokers receive can vary significantly from one lender to the next – as our survey results demonstrate. When done well, service can leave a lasting positive impression on both a broker and their client, and vice versa when things go wrong. The Mortgage Finance Gazette Rated for Service Awards highlight the lenders that are first class in their field, and such service is not achieved without a great deal of hard work and commitment.
One of the most consistent features of the survey results, across all three sectors, is that good service does not correlate with a lender’s size. In some instances, less prominent building societies featured alongside, or were rated more highly than, larger, more well-known lenders. Additionally, being a specialist in one chosen field – buy-to-let (BTL), for example – did not guarantee a higher ranking than being a non-specialist lender. Among lenders that performed exceptionally well, gaining the Top Rated for Service accolade, there was evidence of a consistent proposition across the board. Almost all lenders achieving this standard demonstrated that good service did not have to be in lieu of competitive products, as is sometimes depicted in the mortgage market. Instead, the scores demonstrate that a well-liked and well-rounded proposition, encompassing all of the service elements, is achievable.
"When done well, service can leave a lasting positive impression on both a broker and their client"
On the whole, lenders that received a Top Rated or Rated recognition in one market also performed well in the other markets, when featured. As expected, there were some stark contrasts between the scores of lenders that were Top Rated and those of lenders ranked lowest overall. There were, however, a couple of lenders that narrowly missed out on an award, with scores very close in some instances. Of the five core service areas, technology produced some of the most surprising results. There had been a previous perception that lenders’ technology, or lack of it, was a cause of frustration among brokers. However, the upper quartile of mainstream and BTL lenders performed particularly well in this area.
In the specialist sector, strategic focus stood out as the area where brokers felt the top-performing lenders functioned the best; perhaps unsurprisingly given the intermediary emphasis of this subsection of the market. Meanwhile, underwriting and case processing stood out in the mainstream and specialist sectors as the area with room for the most improvement among lenders in the upper quartile. Strategic focus was the weakest area for BTL lenders in the upper quartile. Some interesting observations can also be drawn in relation to the service areas where lenders performed well. A lender’s sales support and communication score, for example, may be more subjective than those for its technology and products, which are more tangible.
"Even when a lender is not actually lending, the support it provides to the intermediary market is still appreciated and acknowledged"
Sales support and communication was an area where the upper quartile of BTL lenders performed particularly well. Given that the BTL market effectively ground to a halt during part of the evaluation period, this score demonstrates that, even when a lender is not actually lending, the support it provides to the intermediary market is still appreciated and acknowledged. When the scores were assessed in terms of broker status – DA or AR – DAs scored lenders more highly across all markets; perhaps a surprising takeaway for lenders. Interestingly, the number of cases a broker submitted each month appeared to correlate with the level of service they received. Although a number of findings from the survey matched expectations around lender service, others did not. These offer lenders plenty of food for thought ahead of the next Mortgage Finance Gazette Rated for Service Awards. Analysis by Natalie Thomas
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Lender Panel
Accord Mortgages Aldermore Bank of Ireland Barclays BM Solutions Clydesdale Bank Coventry Building Society Danske Bank Fleet Mortgages Foundation Home Loans Halifax Hodge Lifetime HSBC Kensington Mortgages Kent Reliance Landbay Leeds Building Society Metro Bank Nationwide Building Society NatWest Newcastle Building Society Nottingham Building Society Paragon Mortgages Pepper Money Platform Mortgages Precise Mortgages Principality Building Society Progressive Building Society Saffron Building Society Santander Scottish Building Society Scottish Widows Bank Skipton Building Society The Mortgage Works TSB Vida Homeloans Virgin Money West Brom for Intermediaries Zephyr Homeloans
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