Bank turns Referencing Company down on venture that would protect their mortgagors – WHY?
Landlord Referencing Services LLP has recently had an interesting conversation with a Bank that was interested in working with us on an affiliate basis.
After a long discussion about the pros of this bank supporting LRS, whereby they would inform their existing buy to let clients about how Lifestyle Referencing may help prevent them from becoming one of the 33,000 landlords that was repossessed, mainly due to rent arrears, in 2012/2013 and in return LRS would provide them with a steady stream of landlords interested in good buy to let mortgages, this seemed like a very simple equation.
Unfortunately simplicity and morality is not a virtue in this game and we were turned down, on the basis that one of this banks biggest suppliers of mortgage applicants is in fact the larger of the estate agent groups. So they felt that if they were to advise their clients about the unique services that LRS can offer the likes of Connells, Bairstow Eves, Sequence, etc would not appreciate the fact that they were referring another referencing company – even if it may prevent their clients from taking on a bad tenant.
This is why Landlord Referencing will not affiliate with parties who do not promote our Lifestyle Referencing tools, as we do not wish to be seen to be party to something which continuously fails to provide the best service to its clients simply because it restricts a revenue stream.
We acknowledge the commercial decision behind this but fail to concur with the ethos behind it and on that basis LRS understand that it is never likely to be adopted, in the foreseeable future, by larger letting agents groups as they have their own smaller, lucrative referencing portals.
But we will continue to soldier on, gaining more numbers each day until there are enough of us as Members of LandlordReferencing.co.uk that financial institutions and larger letting agents will have no option but to take notice.
HOWEVER, if you are a bank, a building society or any other finance house that offers buy to let mortgages (not a broker) then LRS would be very interested in hearing from you as to how we can support each other on a two way basis. LRS will support you in finding new applicant mortgagors and in return all that we would require is for you to tell your existing mortgagors about LRS and how they can stop taking one anothers bad tenants in the future, as an extra safeguard against their mortgage and pension.
…You would have thought that was a pretty easy deal, wouldn’t you?