Matthew Tooth

56% of brokers highlight lenders changing their minds as biggest frustration

Over half of brokers (56%) have cited lenders changing their mind on a deal as their biggest frustration about the specialist finance market, according to recent research.

The results come from a broker survey carried out by LendInvest at the NACFB Commercial Finance Expo in Birmingham on 20th June 2018.

The survey also found that 24% of brokers saw the lack of good service as their main frustration, while 14% said rates not being good enough was an issue. 

Meanwhile, a further 6% cited that a lack of choice as their biggest issue with the market.

“At LendInvest, we are regularly approached by brokers who began their case with another lender but became so frustrated with the process or decision making that they are now looking to switch to another lender,” said Matthew Tooth, chief commercial officer at LendInvest (pictured above).

“This is why we take steps to prevent our brokers and borrowers facing the same frustration. 

“Ensuring the line of communication between the broker and our underwriting, sales and credit teams remains strong, even during the primary stages of the deal, is key in preventing disappointments for a borrower. 

“Sometimes changes in circumstance cannot be helped; however, taking the time to properly review a case and stick to the decision in principle benefits all parties involved in the long run.” 

Kim McGinley, director at Vibe Finance Ltd, added: “When a lender commits to a case upfront and then changes its mind as the deal progresses it can be down to a variety of reasons; underwriting and the credit team that sign off the case are not on the same page, or the lender may simply move the goalposts.

“For a broker this can mean make or break when representing a client. 

“Transparency is required now more than ever. 

“Although a lender’s appetite can change, as a broker we need to be able to assure the client that once a decision in principle is issued, subject to the information the lender requires, that they are there to lend and not put obstacles in the way.”

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