The new report revealed broker satisfaction with building societies averaged at 85.9% in the first half of 2020 – a rating which was 3.4% higher than banks and 10.3% more than for specialist lenders.

According to Smart Money People, which carried out the study, 21% of all broker feedback was focussed on customer services and underwriting – two areas where sentiment was ‘overwhelmingly positive’.

In fact, the report revealed, these two areas were ‘fundamental’ to the broker experience of building societies with the smaller peer group three societies receiving particular praise in these areas.

The study examined how brokers viewed the different peer groups of building societies – as per the latest BSA building society assets list – with the larger (peer group one) coming out top for product range and criteria.

Meanwhile, the peer group two societies were viewed by brokers as being the most flexible group of lenders. Although not as competitively priced as those in peer group one, they were still commended for ‘looking for reasons to lend’.

The report, Building Societies in 2020: Banking on broker satisfaction? took data from 2,456 who offered feedback between 1 January to 30 June 2020.

Criticism

Whilst all building societies were held in high esteem amongst the majority of brokers there remained areas where they could improve.

Slow service and poor online systems emerged as one of the weaker areas in brokers’ opinions.

What’s more, broker sentiment about the interest rates offered by peer group two and three building societies was noticeably poorer, although the theme didn’t attract a large amount of broker feedback. Smart Money People said just 4% of broker feedback about peer group three building societies focused on interest rates.

Upper hand

Nate Harwood, co-founder of Smart Money People, said “In the eyes of mortgage brokers, building societies have the upper hand when it comes to delivering a great overall broker experience.

“In particular they rave about the manual underwriting and high quality customer service offered by building societies of all shapes and sizes.

“With the mortgage market becoming increasingly cut-throat, maintaining the high levels of broker satisfaction seen across the first half of 2020 will no doubt prove to be critical to ensuring that building societies continue to thrive.”