In this instalment of The Interview The I speaks to Richard Walker, head of intermediary sales at Virgin Money about the evolution of the BDM role, supporting first-time buyers and the housing market’s prospects.
Affordability continues to remain stretched in the market. How important is shared ownership when it comes to helping people take their first step onto the property ladder?
Shared ownership has a place in the mortgage market as it’s an affordable option and for certain customers it could be the difference in being able to purchase their first home or not.
As such it’s a very important consideration for customers who don’t have a savings pot to use as a deposit.
With inflation rising and the cost of everyday items increasing it will be harder to save for a deposit so shared ownership allows customers to get the home that they want quicker with a smaller deposit.
With the Government pledging to build up to 90,000 new properties over the next five years there will be more opportunities for customers in this sector and it currently represents circa 2% of the UK’s housing stock.
At Virgin Money we’ve offered Shared Ownership for several years and are committed to this segment of the market. Our Shared Ownership proposition offers up to 95% LTV on the share for New Build properties.
During the pandemic we saw a shift in the role of the BDM? How have BDMs adapted to the new normal at Virgin Money?
They adapted brilliantly from the start of the pandemic shifting seamlessly to support brokers throughout the many stages of the “new” normal that we have seen. We embraced virtual working and quickly adapted to use a more tech-led approach.
As we now adapt to the new way of working on a hybrid basis through our recently launched ‘A life More Virgin’ we’ve a much more flexible approach in how we deal with our brokers and how they now want to interact with us.
We have a team of telephone and face to face BDMs who work together to support both the Virgin Money and Clydesdale Bank brands and have received some great feedback for our continued support.
What do you think makes a good BDM?
I believe a good BDM takes the time to understand the broker and their business. They use their understanding of the market, policy and proposition to support brokers in finding the right solution for their customers.
Great BDMs follow up on their promises and commitments, taking ownership, appreciating the broker has the relationship with the customer, adding value not just to cases on their desk today but enhancing possibilities of future cases that the broker could place.
Where do you see the future on the technology front? What does the mortgage journey of the future look like?
There are several different areas which are likely to evolve over the coming years. I think we’ll see APIs adapt and integrate into various parts of the mortgage journey linking them all together.
Pre-population between sourcing and CRM systems is already developing and we are likely to see Open Banking become more prevalent within the mortgage journey.
Lenders are seeing the benefits investment in technology brings and as a result are seeing improvements in their processes with efficient case-tracking, document uploads and mobile application submitting.
There is still a way to go and more to be done as an industry to embrace technological improvements that will help support customers through their mortgage journey. Advice is still key but the advancements in technology will help make the overall process more efficient for both brokers and customers.
Green mortgages have also come to the fore. Innovation will be key to meeting climate targets. Is there enough innovation in the space?
In 2021 we launched our greener mortgages product, which is designed to reward customers who buy greener, new-build homes with lower rates of interest.
As part of the proposition, we partnered with Carbon Neutral Britain and for every greener mortgage that completes, we will fund environmental projects, such as the development of wind, solar and hydro renewable energy.
The funding offsets the equivalent of the average UK home’s carbon emissions for an entire year. Together, we’re also aiming to plant 100,000 trees from the sale of our greener mortgages.
There’s room for more innovation in this space and it’s great to see the focus on this is increasing as lenders accelerate their plans to help reduce carbon emissions from the UK housing stock.
According to Moneyfacts there are currently over 200 green mortgage deals available. However, with six in 10 properties currently standing at an EPC rating of below C, there is still work to be done to achieve the targets identified by the Government.
There’s a real need for everyone in the housing space to work together to from lenders, brokers, estate agents and surveyors both in terms of driving product innovation but, importantly helping customers understand the benefits of a more energy efficient home both for now and in the future. What I would say is that lenders have acknowledged this and positive action is being taken.
There has been a mix of stories of late regarding the potential of a property crash. How do you see the market’s prospects in 2022?
The demand for housing remains strong and I expect to see a healthy purchase market continue.
Remortgage and product transfers also provide opportunities for customers looking to secure a new rate.
Factors such as the cost-of-living increase, rising inflation and tax rises may mean we see the rate of house price increases slow. However, the desire for space and less reliance on city centre workspace is still on customers’ minds which will support the market.
If you were going to tell intermediaries one thing they need to know about Virgin Money, what would it be?
We truly value the relationships we have with our broker partners. Our team of expert BDMs can discuss new applications and support with detailed packaging requirements in advance of submitting the application. A well packaged case will lead to a much quicker offer.
