Many brokers are unsure of which option to take. So, our broker account managers break it down.
What are the Benefits of going Direct to Lender?
Jimmy Allen: One of the main advantages of a broker going direct to a lender is the control. The broker has full control over the case, from sourcing a deal to packaging the case; and the broker can then maintain their relationship with the client throughout.
Whats more, brokers who go direct have the benefit of no broker fees, which is always something that will attract more clients if there are less fees to pay.
Eddie Lau: Plus, if there’s an issue, the broker can go direct to the lender to try and solve it. Some lenders may also offer exclusive deals for the brokers who do choose to go direct.
What are the Benefits of using a Master Broker?
EL: As a Master Broker, one of the main benefits of using our services would be the whole of market comparison – our brokers have immediate access to a broad product range. We also have existing relationships with the lenders on our panel, which means that we’re able to refer cases that wouldn’t necessarily fit the ‘normal’ criteria.
JA: We also have fantastic relationships with the surveyors we use. We recently were able to find a surveyor to do a drive by valuation on a £1m property, which saved the client a huge amount, as other surveyors would only do a full valuation (the LTV of the property was <40%). If the broker had gone direct to a lender in this situation, they would’ve had to do all the legwork and call different surveyors to negotiate this, because of our resources and relationship, we saved everyone involved a lot of time.
We can also offer brokers deals which are only available through us, meaning brokers, who submit cases to Norton, have an even wider range of products to source deals for their clients.
EL: I think one of the best things about using a Master Broker is the convenience; our experienced, CeMap qualified members of staff do all the legwork, saving the broker valuable time. We offer the option to introduce a case to us and we do the advice (saving the broker even more time), or the broker can advise on the case, but we’ll still do all the behind the scenes work. Either way is a great option to save the broker a lot of work and time.
Do you find that many Brokers you deal with are now going Direct?
EL: It’s a bit of a mixed bag; larger companies have the time and resources to go direct, but smaller companies say they don’t have the time or relationship with the lenders to warrant going direct. If there’s a product available direct, we’ve found brokers are willing to do the work themselves, as it’s in the client’s best interests. However, we’ve also found that some brokers can’t find the ideal solution by going direct, or they simply prefer for a Master Broker to do the chasing and paperwork. I have found that some brokers have said going direct isn’t on par with the service they’re getting from first charge lenders and the chasing is too time consuming for them.
Can Brokers do both?
JA: Absolutely. We would always say to get quotes from both to see what is available. Then, you can compare rates and fees involved, and look at the time involved to see which would be in the best interest of your client. If you already have a good relationship with a lender, this may be the best route; if you have a difficult case and don’t want the hassle of contacting each lender, a Master Broker may be your best option.
Both our Account Managers agreed that there are clear advantages to both routes. It’s just comes down to what is in the best interest of the client: would they get the best deal directly from a lender, or does the case require more work and need the help of a Master Broker?