Brokers and Lenders Delivering Satisfied Customers
90% of Customers Satisfied with their experience–through either channel (Brokers or Lenders)
Satisfaction levels are high for both channels, with 90% of customers satisfied with the service provided though both brokers and direct to lender channel. Broker customers though were most satisfied, with 32% giving their experience of using a broker a 9 or 10 outof10 (with 10 being “exceeding expectations”), compared to 20% of direct to lender customers giving such a ranking.
Different Customers Choose Different Channels
For those using the broker channel the decision was driven by personal relationships. An existing relationship with a broker was the most popular reason (34%) and the second most popular response was the recommendation of family/friends (32%). For direct to lender customers, the primary reason (58%) was driven by the existing transactional banking relationship the customer had with the lender.
The importance of support versus best price
The second most important reason customers chose to go via a broker was support through the mortgage process (19%), compared to only 7% for direct to lender customers. However, direct to lender customers ranked best price (29%) as the second most important reason behind existing relationship, compared to broker customers (18%). Through our qualitative focus groups broker customers valued the “navigator” role brokers played. Direct to lender customers said they had performed more research and were largely focussed on best price.
Acting in the consumer's Best Interest
While overall 82% of broker customers and 73% of direct to lender customers agreed that the broker or lender generally acted in their customers’ best interest, the degree of confidence in this was higher for broker customers. Some 40% of broker customers felt the broker acting in their best interests at all times, compared to only 22% for direct to lender customers. Focus group feedback indicated direct to lender customers felt they may have been placed in products that were more complex and had more extras than they needed.
Consistent with the high satisfaction through each channel, customers expressed loyalty to remaining with their channel of choice. 73% of broker customers would use the same broker again for another mortgage and 65% of direct to lender customers would go direct to the same lender again. However, some 20% of direct to lender customers said they would go direct to a different lender next time, while only 12% of broker customers would use a different broker.