One year ago, Steve Seal was promoted from sales and marketing director to managing director of specialist lender Bluestone Mortgages.
Having navigated the storm that is Covid-19 in his maiden year, we thought there was no better time to sit down with him and explore his vision of the future.
In what areas do you intend to improve the business?
Ultimately, Bluestone’s goal is to increase financial inclusion among borrowers who have previously been unable to access traditional lending. Sadly, it is likely that being rejected for lending on the high street is going to become a more commonplace scenario following the Covid-19 crisis, meaning that the current cohort of underserved borrowers could grow.
To this end, my aim over the next few years is to continue to build Bluestone’s profile as a lender that is focused on supporting the underserved market by utilising innovative technology, providing new lending solutions and partnering with advisers.
One particular focus for me at the moment is strengthening our broker support team in Sheffield so that we can provide a wider variety of queries, particularly those that arise as a result of Covid-19.
What kind of brokers does Bluestone like to work with?
We like to work with brokers who have the customer at the heart of their business. Brokers who are committed to finding the best possible solution for the customer are a real asset to us. It is also really important that our advisers are willing to try new technology in order to improve the customer journey and grow.
How did Bluestone handle remote working? What lessons did you learn when doing this?
We already had an online working practice in place for the business pre-Covid-19 which stood us in good stead. As a result, the process of switching everyone to remote working brought with it very few challenges.
Embracing technology has long been central to our business philosophy. A key lesson we’ve learnt from the remote working period has been that technology is its importance in the maintenance and sustainability of the business. It is an area we will continue focusing on to support our evolution.
What long term changes have resulted from the above, if any?
Since the start of lockdown we’ve found that staff prefer a balance between home and office working in the long term, and this is a principle we are keen to facilitate in a safe manner. The results we’ve seen while the team has been working from home say it all – staff productivity has been maintained and our lending volumes are now at record levels.
The one challenge we face with this in the long term is ensuring that staff continue to feel embedded in the business. This will be a focus for us as we manage the new balance between office and remote working.
What more can the mortgage market do to support non-vanilla borrowers?
I’m a firm believer in that greater support for brokers will result in greater support for customers – and it will be up to lenders to make this a priority. Engaging existing advisers with the help of business development managers and key account managers and encouraging new advisers to tap into the specialist market will be key here.
Doing so will ensure that the broker community is geared up to support a growing number of non-vanilla customer segments which are likely to emerge as a result of the Covid-19 crisis.
Ensuring that broker support desks are equipped to serve advisers in the long term should also be high on the agenda for lenders. Advisers who are able to meet the heightened demand from these borrowers with efficiency and confidence will be an asset to the growth of the specialist market.
What most excites you about the mortgage industry now things are cranking up again?
It is fulfilling to reassure customers that their homeownership goals are achievable with the right support. Take a customer who is made redundant during Covid-19, for example. Maybe they’ll fall into financial difficulty as a result, but soon they will be back on their feet.
Being able to provide solutions for borrowers who have hit a setback, through no fault of their own, and help them purchase their dream home is a really rewarding part of the job.
What do you think are the opportunities for advisers in the specialist lending market, and how can they capitalise on these?
The changing credit profiles of customers affected by Covid-19 are sure to accelerate the growth of the specialist market. This is a big opportunity for advisers. Advisers are going to be approached by more people looking for a helping hand. As a result, it’s likely we’ll notice more brokers starting to use the specialist market as awareness grows.
Our message to brokers is to gear up now. It is in any adviser’s best interest to have the tools ready which can better support them in their conversations with non-vanilla customers in the future. In capitalising on these opportunities, firms will be better equipped to retain existing clients and welcome new ones – all the while helping them prepare for a post-coronavirus future.
How do you think greater financial inclusion will look in 2020 and beyond?
Technology will go a long way towards improving financial inclusion. Typically, a lot of the eligibility tools out there are geared towards mainstream borrowers rather than those with complex borrowing needs.
If initiatives such as Open Banking pick up speed in the specialist market, then non-vanilla borrowers will be able to access lending more quickly and we’ll be able to reassure these customers that the financing they need is well within reach.
Over the longer term, the high street banks could start to play a part in championing financial inclusion. Last year, our Specialist Lending Tracker found that 19 per cent of consumers who had been rejected for high street lending were unaware of the alternatives available.
If more mainstream lenders refer borrowers to an intermediary who can offer them a specialist solution, fewer customers would be left wondering how they are going to secure the lending they need.
