Building societies have consistently demonstrated their value in the UK’s mortgage market, standing out as leaders in broker satisfaction and customer service.
The 12th edition of Smart Money People’s Mortgage Lender Benchmark highlights this trend, showcasing increased market activity and enhanced levels of satisfaction across a broader spectrum of lenders.
Notably, for the 12th time in a row, building societies have managed to outperform others, even eclipsing the high satisfaction levels recorded in the first half of 2023.
The rising tide of broker satisfaction
Building societies have cemented their position at the forefront of the mortgage market by delivering exceptional broker satisfaction. They excel particularly in areas of customer service and system efficiency, setting the bar high for other lenders.
Despite the impressive strides made by lifetime lenders – who were only 0.2 points behind building societies in satisfaction and managed to outscore them in net promoter score (NPS) – building societies continue to dominate, underscoring their commitment to exceptional service delivery.
The overall satisfaction ratings for building societies saw a marked improvement, especially when compared to the relatively small increases experienced by banks and specialist lenders. This improvement is attributed to the superior communication, online tools, and system efficiencies that building societies offer.
These enhancements have become critical differentiators in a market where speed and ease of criteria are crucial.
Principality Building Society: A case study in excellence
Principality Building Society has emerged as a notable success story within the sector, topping the table with an impressive NPS above +70. This achievement reflects strong broker recommendations and underscores the society’s success in critical operational areas, such as lending value accessibility and the efficiency of their application process.
The high NPS score is a testament to the mutual’s ability to foster strong relationships with brokers, ensuring their needs are met with precision and care.
The power of relationship management: Newbury Building Society
Newbury Building Society typifies the importance of relationship management in the mortgage sector. With a stellar broker satisfaction score of 96% in relationship management, Newbury demonstrates that personal relationships and support are vital in achieving broker loyalty and satisfaction.
Their rise from the bottom half of the table from the last report is a clear indicator of the positive impact that attentive, personalised service can have.
Looking ahead for building societies
The current market dynamics present both opportunities and challenges for building societies. To maintain their leading position, they must continue to innovate and adapt to the changing needs of brokers and borrowers.
Key focus areas should include:
- Enhanced digital tools and systems: Investing in the latest technology to streamline processes and improve the user experience for both brokers and borrowers.
- Personalised service: Continuing to build strong, personal relationships with brokers to ensure high levels of satisfaction and loyalty.
- Speed and efficiency: Focusing on improving the speed of application processing and decision-making to meet the fast-paced demands of the market.
- Communication: Maintaining open and effective communication channels to keep brokers informed and supported throughout the lending process.
The latest Mortgage Lender Benchmark results demonstrate building societies’ resilience and adaptability in the UK’s mortgage market, consistently leading in broker satisfaction and service excellence.
By continuing to focus on innovation, relationship management, and operational efficiency, they can sustain their competitive edge and meet the demands of brokers and borrowers.
