The Intermediary speaks with Darren Ditchburn, CEO at Vernon Building Society, about his first year at the helm, the society’s recent achievements, and the evolving landscape of the mortgage market.
What has been the highlight of your first year at the Vernon?
The highlight for me this year has really been the recognition we’ve received in the people space. We’ve won two people-based awards and achieved a third recognition. Firstly, we achieved the Greater Manchester Good Employment Charter status, which is excellent as it credits us for our high employment standards. We also won Employer of the Year at both the Stockport Business Awards and the North West Business Awards. I’d say that ‘treble’ of people-focused recognition, especially as a new chief executive in the first year, is definitely a highlight.
Would you say you’ve exceeded expectations in your first year?
In respect of the people side of things, definitely. We’ve made good progress this year. For me, this year was about coming into the business, getting to know it really well, and working to make our proposition clearer – aligning it with product and being able to tell the Vernon story to the market better.
What has been the most challenging thing during your first year at Vernon?
The most challenging thing this year has been navigating economic and market volatility. Earlier in the year, there was a lot of noise around tariffs and their implications for spot pricing and repricing the mortgage range. The market is very sensitive and reactive to speculation. More recently, we’ve had unhelpful budget speculation. Navigating all that while trying to create more stability has probably been the biggest challenge.
What are your thoughts overall on the budget and its impact so far?
Overall, I think it could have been a lot worse – after all the speculation, what actually came out wasn’t as bad as it could have been. In terms of the housing market, there wasn’t a great deal in there, except for some implications for higher-end property prices with the mansion tax, but otherwise it’s been pretty stable. From a savings perspective, it was bittersweet – we were concerned about changes to ISA limits, so seeing them maintained is positive, but the introduction of more complexity is probably the sting in the tail. Managing different rules for over 65 and under 65 is easier said than done.
You recently relaunched your mortgage offering. What prompted this refresh and what features are new?
The Vernon has a very expansive, flexible lending policy, which is fantastic, but we had a pretty standard, generic range of products that didn’t really showcase what we did. So, we’ve been refining our lending policy to more clearly tell our story and aligning products to that policy, so brokers and borrowers know exactly what our proposition is. For example, we now have a designated complex product for more complex cases, like complex income, which is much clearer for customers compared to offering just a standard 5-year fixed rate mortgage.
Has there been any progress made on digital transformation and how is it shaping customer experience?
We know we need to be easier to do business with. We’re known for our flexible lending criteria, knowledgeable people and competitive products, but we definitely need to be more accessible. So, over the last four months, we’ve undertaken a full request for proposal (RFP) process for technology services, with a key part being loan origination. We’ve just selected a preferred supplier for a new technology platform and are going through due diligence now. Early next year, we’ll be able to announce who we’re working with, and it’s an exciting road ahead in transforming how we work to make it easier for brokers and borrowers.
What are your priorities for next year?
The key priority is to take the grit out of the wheel and make Vernon Building Society easier to do business with. We’re focused on using technology to take away routine administration and create a seamless experience for brokers and members. Importantly, it’s not about using technology to replace people, but to increase the value around relationships and what people can bring.
How is Vernon evolving to meet the vision of a future-facing, modern mutual?
We’re transforming how we work by using technology to improve efficiency and customer experience, while maintaining traditional values like personal service. We’ll continue to manually underwrite mortgages and support people onto the housing ladder, especially in underserved areas. It’s about combining modern technology with traditional values.
What are your thoughts for the next three to five years at Vernon?
Over the next three to five years, it’s not just about technology transformation. We’re looking to grow the business both digitally and physically – we’re based in Stockport but want to expand that footprint. We’ll also continue refreshing our proposition and exploring new areas of the market, maintaining an innovative approach to products that work for real people.
How do you use broker or client feedback to enhance your products?
We work closely with brokers and take key feedback from our business development team and smart money people feedback surveys. It’s primarily through close relationships with key brokers that we get most product insight.
Do you have a final message for brokers or lenders?
I’d say that we’re a regional Building Society in Greater Manchester, but we provide mortgages across England and Wales. We take a common-sense approach to underwriting with human decision makers, and we’re focused on making mortgages work for real people, not just ticking boxes. We’re very personal and relationship-based in our approach.
