Harpenden Building Society won the Best Local Building Society award for an unprecedented 5th, consecutive year at the What Mortgage Awards. Today we meet Harpenden’s CEO Sarah Howe who tells us more about this specialist lender which packs a punch when it comes to mortgage lending.
Q: How did it feel to be voted Best Local Building Society in the What Mortgage Awards once again?
A: In short, it meant the world.
Recognition like this is both humbling and gratifying at the same time. To have won the ‘Best Local Building Society’ award for 5 years on the trot really says something about the Society. We will never take this recognition for granted, continually pushing on to reach new heights both in the products we provide and the way we serve our customers.
We are grateful to our customers who voted for us and pleased we are delivering the service they want.
Q: Why do you think people voted for you?
A: I think people like the personal touch. In a service industry where human interaction is becoming less common we’re finding our customers greatly appreciate both the face to face contact or a helpful individual on the phone. Many lenders have adapted their model to rely more heavily on automation however this can be a false economy.
We also get to know our customers at a more personal level by understanding their specific motivations and needs to match them to the best mortgage or savings product – again something we find our customers appreciate.
The Society uses a blend of traditional practises and contemporary thinking. We believe the integration of digital technologies bringing convenience and speed combined with an opportunity for customers to interact with our staff is a winning formula.
Q: Why are you described as a local building society?
A: The vast majority of our customers live in the South East of the country, although we do have a national reach. Serving the mortgage and savings needs of those living in our community will always be our focus and ties in very closely to our mutual heritage which is member not shareholder based. Unlike mutual organisations, shareholders of a company, by their very nature, often do not necessarily reflect the typical customer.
Shareholder interests in the organisation are more often than not motivated by the profit and return for their investment, usually with a short term rather than long term focus. Our members are interested in our long term success and the positive impact we have within the local community where we are present. This said, the Society has ambitious plans to sell products and services through increasing numbers of specialist distributors around the UK so more people will be able to tap into what Harpenden has to offer.
Q: How many branches do you have and where are they?
A: We have six branches in total all within the counties of Hertfordshire, Buckinghamshire and Bedfordshire. They are located in Buckingham, Harpenden, Leighton Buzzard, Radlett, Tring and Wendover.
Q: Can people outside of your local area take out a mortgage or savings with you?
A: Yes, absolutely. We are not restricted by postcode and welcome customers from outside of our traditional heartland in the South East. An increasing use of technology gives easy access to our products throughout the UK.
Q: Do you do manual underwriting and if so explain what that means?
A: Yes, we do. As lending becomes more complex in the modern age the need for specialist lenders assessing applications with a dedicated underwriting team will become even more apparent.
The future looks bright for these niche lenders and the brokers who will put business through them. Customers increasingly need to find a mortgage that will meet their own, individual, specific requirements and will give lenders like Harpenden and our broker partners a significant opportunity for growth. It’s a win-win situation for all concerned ultimately giving customers with complex incomes a greater choice of mortgage, enabling them to secure their desired property more readily.
Simple underwriting through automation, an algorithm or credit check will simply not be enough in many cases – a deeper dive into the customer’s financial situation is needed to create more lending opportunities.
Q: What sort of mortgage products do you offer?
A: We have a wide range of mortgages to choose from including residential; self-build; development; guarantor; later life; buy to let and interest only options – but it’s not all about the product, it’s about finding the best mortgage solution for our customers.
I would actually describe the Society as ‘customer’, rather than ‘product’ led. Our business model is based around serving the customer and their specific financial needs on a very personal level.
As a mutual Society we get to know our customers well – they are a person, an individual – and most definitely not a number! In the mortgage application process we view our customers’ financial profile in depth by talking with them to gain the bigger picture. An increasing number of people have non-standard incomes working in a freelance or self-employed capacity and as a result have their mortgage applications rejected by a standard algorithm or credit check.
With personal underwriting and careful scrutiny of a wider, individual financial profile we are more able to say ‘yes’ more often in complex lending situations.
Our aim is to put the customer first on every occasion – we actively listen to their needs whether they want to go down a traditional borrowing and purchase route or look at a more progressive self build option using the latest construction techniques – whatever their need, they have our attention. We believe this customer orientated approach has been a major factor in helping us secure this latest What Mortgage award, we couldn’t be happier!