"While products remain important, it is the people delivering the service to our broker partners who are key to making a lender truly first-class."
It’s been another year of living through interesting times and a busy one for the Society.
Our recent digital enhancements and the broadening of intermediary relationships within our geographical operating areas have been significant drivers for our business. Our residential proposition has been well-received, and the steady growth in the number of firms using our services over the last 12 months has allowed us to extend our ethos of kinder, relationship-driven banking to more brokers.
The two interest rate cuts this year supported consumer confidence and residential sales, pushing the number of completions to their highest in six years. According to property data company TwentyCi, activity rose by almost 25% from the start to the end of the year.
The holiday let industry
Lenders continue to provide varying solutions in the continuously competitive holiday let lending market.
The Cumberland, with a view of supporting more end customers, made a range of positive criteria changes in September, improving the journey for brokers and customers alike.
Due to landlords increasingly turning to limited company structures, which we are happy to accommodate, we enhanced that process also. It is however worth noting that this type of operating entity should always be reviewed with a customer's accountant before deciding whether that is the right decision for their circumstances.
The holiday let market continues to see regulatory and tax changes being proposed and implemented across England, Wales, and Scotland. In this sector, lenders must remain flexible and understand how these regulations interact with each individual case. For example, in Scotland, it can take up to six months, or longer, for local councils to issue a licence, with the release of funds often dependent on that piece of paper. The market will need to keep abreast of the changes that will follow in England and Wales so that appropriate lending solutions can continue to be provided.
Highlights of 2024
Many brokers will now be aware that The Cumberland launched its account-based management structure this year. This initiative was designed to give our partners direct access to a business development or relationship manager whenever they need guidance.
The human touch remains vital alongside the launch of digital tools such as the mortgage calculator available on The Cumberland’s website and the broker portal, which allows brokers to submit applications and upload documents digitally.
The pensive build-up to the Autumn Budget was also a noticeable feature this year. Business activity slowed temporarily as applicants took a ‘wait and see’ stance before making significant property decisions. However, after the budget, business levels returned to normal levels across both residential and holiday let applications.
Taxation and regulatory changes will always present considerations for customers within their business plans, creating challenges but also opportunities. What may be viewed by some as obstacles to doing business will often be seen as opportunities by others.
Learnings from 2024
While products remain important, it is the people delivering the service to our broker partners who are key to making a lender truly first-class.
The Cumberland was proud to be recognised as the second best financial services firm to work for in the UK this year by Best Companies. This achievement, supported by anonymous employee feedback — 89% of whom responded — was a cause for celebration.
I am extremely proud of my team, who consistently go above and beyond in their work with brokers and customers alike. I’m already looking forward to deepening those broker relationships further in the coming year.
Looking ahead to 2025
While challenges will undoubtedly arise, we are well-positioned to support brokers with our overarching ethos of providing Kinder Banking. Every indicator points towards a busier, more opportunity-filled year for mortgage brokers in 2025, as the property and lettings markets respond to growing market positivity.
On behalf of everyone at The Cumberland, we wish you a restful holiday and a wonderful New Year in 2025.
