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Photograph by Pete Johnson
Photograph by Pete Johnson
Photograph by Pete Johnson
Photograph by Pete Johnson
Once, in the recent past, a broker said: “I’d rather set myself on fire than send the case to Accord.”
It was this damning allegation that ignited another fire in the eyes of the bosses of the intermediary arm of the Yorkshire Building Society (YBS) and turned the lender into the beloved broker he is today.
Jeremy Duncombe, already well known in the industry for his roles in Advantage, L&G Mortgage Club and Santander, joined us just as efforts to significantly improve the business were in full swing and took over as Director of Mediation in January 2018 .
“The comment was a catalyst for change, not empty words,” says Duncombe, who has since been promoted to managing director.
Creating a profile and offer that isn’t just based on price can set you apart from the competition.
“Mike Renier, Charles Canning and David Robinson were very keen to make this change. The three of them went into the market to ask what Accord could do to be proactive and supportive and put the broker first, and that’s what I inherited: the drive to really make those changes.”
Accord was founded as a dedicated brokerage arm of YBS in March 2003 and is the oldest brand dedicated exclusively to construction brokers. As for the reason for the launch, Duncombe says its main goal was to serve borrowers who couldn’t get a mortgage through traditional means.
“YBS is considering diversifying and moving towards a more formal approach to brokers. Prior to that, all lending was carried out through the branch network,” he says.
Lenders should help brokers understand what they want
He entered the market with products such as professional mortgages that could not be obtained directly through the YBS branch.
“Things were very different in those days; the big lenders were dealing with the primary market, and the brokers were much more into specialized lending,” says Duncombe.
“A lot of the specialist lenders at the time were American investment banks like Platform, Mortgages PLC, Kensington, and they were all funded in slightly different ways. Few major lenders engaged in specialized lending.
“Accord launched a range of offset products, fixed and trackers, as well as a deal with 100% mortgage professionals to provide mortgage products to borrowers who were not served on the high street. And that was the starting point.”
We want to strengthen our position by offering really high rates for most customers.
The Accord team was formed 20 years ago by then-managing director Linda Will, and according to Duncombe, the reaction from the brokerage community was strong, and the lender began to expand its portfolio with stand-alone and now-defunct self-certified mortgages. . By 2005, the company was offering stocks and mortgages to key employees.
Applications were only submitted online, a key USP for a lender and quite advanced for the early 2000s.
“Setting up systems from scratch that worked for brokers was a key success factor,” he says, “plus creating custom intermediary products that were not limited to the legacy system.
The relationship I see between brokers and lenders is probably the strongest ever.
“He also had a lot of the most expensive products, more than the big lenders, and the volumes were growing fast. In 2006 there was an increase of 50% compared to 2005”.
Formation of public mentality
Of course, the credit crisis hit, and, as you know, the whole market got hard.
“The period from 2008 to 2010 was really difficult, but one of the best things that Accord did during this time was taking care of its employees. He didn’t fire anyone,” Duncombe says.
“This is a theme that we have stuck to and during Covid it was the same; we left all our staff. This building society mentality of working closely with both colleagues and clients has served us well.”
We focus on our common sense underwriting. Brokers can always talk to our underwriters
The way the Accord managed to deal with many of the challenges of the pandemic Duncombe calls the proudest moment of his career.
“We didn’t fire anyone. We quickly moved our business development consultants to work from home and were able to launch a web chat to communicate with brokers.
“The team got together, everyone switched roles, and we told the brokers in as much detail as possible about everything we do. Then we got down to business as soon as the opportunity arose.”
As a building society, YBS and Accord have also helped through difficult financial times.
We want to continue to develop. Although we had a record year for YBS in terms of gross lending last year, we cannot stand still.
“For us, having savings as a safety net when other forms of funding dry up gives you the ability to keep trading. Accord still uses a range of funding methods, but if markets are closed for securitization or a full sale of the loan, we have a savings book to continue lending.”
Before joining the team, Duncombe closely followed the Accord and its development.
“This brand has always been very competitive on price. In my five years at L&G, I’ve had the opportunity to look at things from a distributor’s perspective. [Mortgage Club] and it helped me a lot in my role when I came to Accord. I saw who did things really well and what brokers really need and want.
Having savings as a safety net when other forms of funding dry up gives you the opportunity to keep trading.
“You will learn how relationships can work successfully and what doesn’t work; which has been tried and failed. You’ll learn that building a profile and making an offer based on more than just price can really set you apart from the competition.”
Working Together
In terms of how brokers and lenders can best work together, Duncombe says it’s not just about putting the case together.
What is especially important this year is to show the value of advice.
“Of course, it is good when everything is well packaged, but creditors must play their part in this. Lenders should help brokers understand what they want.
“From our point of view, we are guided by our common sense underwriting. Brokers can always talk to our underwriters; they have the flexibility and autonomy to make such decisions.
“They might say to the broker, ‘If it were your money, would you lend it?’ and “If the answer is yes, then talk to us.”
The building society mentality of working closely with both colleagues and clients has served us well.
“This is not a black and white solution. One of the most frustrating things for a broker is when something is denied because that’s the policy. You also don’t need partial underwriting when you ask for one thing and it comes back and so on. It’s one of the things we’ve really focused on over the last five years.”
Always looking for feedback
Accord continued its early approach by entering the brokerage market and asking what could be done better. The company recently sent out a questionnaire to brokers seeking feedback on areas for improvement.
“It helps us develop our strategy with them, especially after Covid, to know what they want and how best to use our sales team.”
Building systems from scratch that worked for brokers was a key success factor.
Recent years have been incredibly challenging for the mortgage market, from the unpredictable impact of Covid to the impact of the 2022 mini-budget.
But the industry has proven resilient, and Duncombe says the tough times have put brokers and lenders in the best spot of his career.
“The relationships that I see between brokers and lenders are probably the strongest they have ever been. Both sides have a lot more understanding of the issues and pressures that each face, and there is a lot more dialogue going on.”
Looking ahead, Accord will continue to focus on supporting underserved borrowers and launching products like Cascade Score and LTI Boost, which offer options for borrowers who can’t get a mortgage or have a much higher rate. in the other place.
At that time, there were not many large lenders involved in specialized lending.
“We want to strengthen our position by offering really high rates for most customers. We will continue to grow by helping people we couldn’t help before and look for areas where there may still be gaps and get products for that demographic.
“We want to continue to develop. Even though we had a record year for YBS in terms of gross lending last year, we cannot stand still.”
Stability
If Duncombe had one (realistic) desire in the market in 2023, it would be stability.
“This is what we have been craving, because with stability, the market can operate in any normal mode at the time. What’s bad for everyone – clients, brokers or lenders – is when you have volatility that you have to respond to. This makes planning difficult; this makes pricing and consulting really difficult.
I inherited the drive to really make this change
“We expect the market to drop by around £50bn this year but there is currently a really strong re-mortgage market, a really strong product transfer market and there are new shoots in the shopping market and in the new build sector. If we know that we have stability, people start making decisions.
“Wherever the rates are – be it 3%, 4% or 5% – and if people know roughly that they will stay there, it is easier to measure affordability.
“What is especially important this year is to show the value of advice. Every scenario will be different, every client’s situation will be different, so the need for advice is more important than ever.”
This article was published in the March 2023 issue of MS Magazine.
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