Broker satisfaction with UK mortgage lenders has fallen to its lowest level recorded outside of the pandemic, new research from Smart Money People has indicated.

This comes as the mortgage market reacts to the cost of living crisis as well as the turbulent economic climate that the UK has experienced in the second half of the year.

The results form part of Smart Money People’s bi-annual Mortgage Lender Benchmark which analyses the mortgage industry according to the views of brokers. The latest edition comprised feedback from over 751 mortgage brokers on 114 mortgage lenders, including analysis on 51 lenders across banks, building societies, specialist lenders and lifetime providers.

These findings indicated that overall broker satisfaction with lenders has fallen by 1.9%, down to 79.3%, dipping below 80% for the first time since H2 2020 (77.8%).

The Net Promoter Score, which Smart Money People uses as a reflection of how likely brokers are to recommend a lender, was down 5.8 points on H1 2022 at +21.1, as scores ranged from -54.5 to +59.3 for the lenders in the report. This was the second-lowest score recorded in the history of the Benchmark, after the peak Net Promoter Score for all lenders was recorded at the start of 2020 at 30.8.

Specialist lenders have seen a considerable fall in their metrics following previously recorded improvements, after the latest research revealed overall satisfaction fell by 5.5% to 75.0%, while their Net Promoter Score was down 24.6 points, to just +1.2.

Lifetime lenders, by contrast, saw the smallest change in overall satisfaction, down 1.1%, while their rating for speed increased 2.4% to 73.8%, as they overtook the banks.

CEO of Smart Money People, Jacqueline Dewey, commented: “The results we’ve published today shows a sharp drop off in brokers’ opinion following three editions of growth as UK lenders struggle to cope with the impact of the interest rate rises and turbulence caused by the mini-Budget. Our analysis shows that broker satisfaction with mortgage lenders is now nearing the lowest recorded levels seen during the height of the pandemic.

“Brokers are frustrated by the situation they find themselves and their clients in, with constant changes and products being withdrawn after applications have been submitted. Our analysis has found brokers are craving some stability within the market, and that brokers need support from lenders – they need to be able to rely on and have confidence in lenders, and whilst processes adapt, communication remains key.”

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