Say yes to more: the value of broadening lender relationships

In a fast-paced, competitive market such as ours, it’s all too easy to fall into a comfortable rhythm when finding the right solutions for our customers - in other words, relying on the same group of lenders that you know and trust. However, this could be costing you valuable business opportunities by limiting yourself to a smaller pool of customers, and neglecting those who could be accepted by another lender you aren’t as familiar with. 

In this article, you’ll learn how to embrace a wider array of lenders with confidence, allowing you to say yes to more customers and ultimately, build a more resilient business.

Stepping out of your comfort zone

As a broker, your reputation is built on delivering tailored solutions. When a customer walks in with a unique or complex situation, your immediate instinct may be to find the path of least resistance through, liaising with the lenders we know best. It’s convenient, quick, and reduces the perceived risk of being faced with countless challenging questions.

Your comfort zone, however, is a double-edged sword. While it streamlines your day-to-day operations, it can also lead to a restrictive mindset. How often do you find yourself saying "no" to a customer because their situation doesn't fit your go-to lenders’ criteria? More importantly, how many of those "no's" could have been a "yes" if you’d simply reached out to a lender you hadn't used in a while, or at all?

The truth is, relying on a small, familiar group of lenders is not a reflection of your commitment to your customers: it's a symptom of ingrained habits. Your preferred lenders might be a great fit for 80% of your cases, but it's the remaining 20% — the customers with non-traditional income structures, complex credit histories, or even a more unique property — that represent your biggest growth opportunity.

The mortgage market is constantly changing, with lenders continually innovating and overhauling their criteria to attract a wider range of customers. Relying on old knowledge is a risky strategy, as even what you knew about a lender’s service offerings just six months ago may no longer be accurate.

Using sourcing tools wisely

Many brokers hesitate to venture beyond their tried-and-tested lenders due to a common misconception that working with an unfamiliar one is lengthy and challenging. However, the myth of a three-to-four-week application turnaround time is just that — a myth. In a market driven by technology and competition, many lenders have significantly enhanced their processes and criteria. Automated decision making, sophisticated online portals, and dedicated broker support teams mean that new lenders can often be just as efficient as your old favourites.

When you’re considering using a new lender, your sourcing tools are your first line of defence. However, bear in mind that the information you obtain about a specific deal is only as good as the data you input and the comprehensiveness of the sourcing tool itself. While a sourcing tool can point you in the right direction, it’s your job to verify these details before making an informed decision. Different systems are likely to throw up various options, but none of them will replace your professional judgment and due diligence. 

It’s equally important for you to look beyond sourcing as your sole point of recommendation. Instead, use it as a complementary service that you can use as a starting point to build your own relationships with lenders - in particular, BDMs. Keep a list of those lenders on your panel who you haven’t used before, and dedicate set periods of time to get to know them better. Whether that’s setting up a face-to-face/virtual meeting, browsing their products, USPs, criteria, or undertaking training, there are so many things you can do to get these relationships off the ground. 

Looking beyond the rate

When a customer comes to you for advice, they're not just looking for the lowest rate - they're searching for the right solution for their needs. While a low rate is a powerful selling point, it’s not always the most critical. The right lender is the one that can provide the borrowing amount and terms that meet your client's specific needs and circumstances.

With this in mind, don't be afraid to offer a rate that’s higher than the most competitive offering available. If a customer has a complex financial situation (such as adverse credit, or complications with a property’s valuation) a slightly higher rate might be appropriate for a lender who understands their circumstances and is willing to approve the loan. Your value as a broker isn't in finding the cheapest deal - it's in finding a solution that works. 

The preconception that a customer won’t pay a higher rate is one you must leave behind. When placed into context, a customer would much rather pay a slightly higher rate and secure the property of their dreams than miss out on it entirely, simply because the lender with the most competitive rate couldn't meet their borrowing requirements.

Your job is to present the solution, explain why it's the most suitable option for their situation, and let them decide if it’s right for them. If they find it unaffordable, you can work with them to adjust their requirements and find a middle ground. At the end of the day, finding a lender to give the customer the funding they need to secure their dream home is the key priority. 

Investing in yourself

Expanding your current lender panel and saying "yes" to more customers isn't just about changing your habits - it’s about investing in your professional development. If you don’t feel as knowledgeable in certain areas of the market, such as complex buy-to-lets, take the time to educate yourself. Lenders offer a wealth of free resources, including webinars, podcasts and marketing packs. By investing in your self-development, you can open up entire new avenues for your business.

As we’ve already touched upon, building relationships with BDMs is another cornerstone of this approach. However, they’re not just someone you call when there's a problem. Regular contact is key to building trust and a mutual understanding. Instead, get to know your BDMs by identifying each lender’s "sweet spots" — the types of clients they are actively seeking — and their "hard no’s." This proactive approach allows you to work with them to find solutions, rather than just throwing a problem their way and expecting them to fix it. Make sure to utilise all the resources at your disposal, including live chats and online criteria checkers, to get more instant answers. 

Maximising opportunities 

Your ability to say "yes" is also directly tied to the tools and connections you have at your disposal. Have a clear understanding of the lenders available to you - are you restricted, or do you have access to every single one? 

Just as you build on your knowledge and self-development, investing in the right systems and having a wealth of contacts at your disposal will help secure your business’s future. Make sure that your system can do more than simply source rates - it should also assist with criteria checking and affordability too. A tool that integrates these features gives you a more complete picture, allowing you to quickly determine if a lender is a viable option and get the most out of every opportunity before you even make a call.

Last but not least, don't underestimate the power of your professional community. Most organisations have peer groups or forums where you can ask for help or get a second opinion on a complex case. Your BDM can be an invaluable resource here, and if they can’t help, they will often signpost you to someone who can. At the end of the day, BDMs want to see you succeed because it's in their best interest — 90% of all lending is done through intermediaries, so they genuinely want to support you.

Looking ahead

Embracing a wider range of lenders is not about making your job more challenging; it’s about making your business stronger. It’s about moving from a mindset of "no" to a mindset of "how can I make this a yes?" By debunking common misconceptions, focusing on the true value of a tailored solution over the lowest rate, and investing in your knowledge and relationships, you can transform your approach and unlock a new world of opportunities for you and your customers. 

By using the right tools and having a solid understanding of lender’s criteria, as opposed to acting as a rate guide, you're providing them a complete, actionable solution. So, the next time a customer with a tricky case walks in, don't just reach for your go-to lender. Take a moment to ask yourself: is there a lender I haven't spoken to in the last six months, or have never thought to use? The answer could be the key to turning what was previously thought of as a “no” into a resounding “yes”.