So MCD is playing out rather nicely. Change isn’t always a good thing but in this case it most certainly is. The hope had always been that with change comes increased awareness, better products and, more importantly, better customer outcomes. It’s very early days but I believe that we are already seeing really positive moves in the sector that have come about through the MCD. The change from the upfront consideration period to the back end reflection period is a good move.
However, something that was always a bugbear for clients was the need for them to resit the consideration period if there was a change to the loan agreement. In addition, telling a client they were able to make changes to their application but there would be a significant delay to when they could release their funds was often met with frustration. Sometimes the change wasn’t the one they perhaps wanted. For example, if their property value was lower than expected, this meant that the loan that could be achieved was also now lower.
However, under the MCD, if there is a change to the mortgage application, it is driven by the customer because their needs have changed. It is much more straightforward to quickly apply those changes and this has had a really positive effect on the overall customer journey.
Not all intermediaries are fully aware of the impact of the MCD yet, and we continue to work closely with our intermediaries to educate them on what we can do and how we can do it. This will be an ongoing process for a while I am sure, but will lead to great opportunities and an increased awareness of the sector in general.
Something else that I have seen much more of post-MCD is the speed in which rapport can be built with our clients through the enhanced levels of fact finding and discussions that take place in an advised sales process. It really does create an environment which, when done correctly, provides the client with the confidence and understanding that they should have with their intermediary. We aren’t order takers; we have the expertise and knowledge and we apply it to our advice to achieve the most suitable outcome for our clients.
I am excited to see what the next few months hold for the sector and how lenders, master brokers and mortgage intermediaries develop their offering to accommodate the changes and the increase in business that I believe will come about as the sector becomes even more attractive to borrowers.