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CV: Iain Smith started with Yorkshire Building Society Group in February 1987 as a management trainee based in Glasgow, where he worked his way through various roles within the branch network. Mr Smith became regional intermediary sales manager for Yorkshire in 2001. Soon after its launch Mr Smith was appointed sales director of Accord in October 2003.

Mortgage Adviser: How did you move into your current role?

Iain Smith: I have been with the Yorkshire Building Society group for more than 21 years now, starting as a management trainee based in Glasgow. I progressed through various roles within the branch network eventually becoming regional sales manager for the society's intermediary business. I was subsequently promoted to my current position back in October 2003. Although the YBS group has grown significantly in this period, it still remains a very friendly, people orientated business.

MA: What were you tasked with doing when you moved into the role?

IS: When I moved into my current role it was almost exactly 12 months prior to mortgage regulation. I was asked to deliver on three fronts. To ensure our systems affecting intermediaries were updated to cater for the changes required, to grow and widen our distribution throughout the intermediary market and to achieve the lending and profitability targets for the intermediary arm of the group.

MA: How have your priorities changed in the current environment?

IS: In a number of ways. Our businesses are not going out needing to chase the business so consequently it has been about being able to maintain the service levels. That was quite key for us when Accord was launched. We had done quite a bit of communication and focus groups with intermediaries to get a feel for, what was even back then, quite a crowded market. It got a lot more busy in the last four or five years, although it has started to thin out again. One of the consistent messages that was coming out was intermediaries felt from a service perspective it was very hit and miss with lenders. Even with lenders they felt gave good service there would be times when that would not be the case and that could vary quite markedly. The other thing was how lenders viewed intermediaries. In a sense there were not many lenders that viewed intermediaries as being a customer.

MA: Will more lenders look to distinguish themselves with service as it becomes increasingly difficult to compete on pricing and lending criteria?

IS: To a certain degree but when you are in a market where criteria is tightening, if an adviser has a client who fits a certain criteria and there is just one lender to choose from they have to begrudgingly accept it. They have to do what is best for the client but it is a difficult position for them to be in. They will have to communicate to the client up front so they are fully aware of it before they go down that route. Service has become a key differential but I think that was becoming one in a growth market.

MA: Are there any initiatives you plan to introduce in the next few months?

IS: We have been very busy working on a variety of issues, not least managing our way through these difficult market conditions. Being part of the YBS group has been a major strength as we have been able to benefit from their financial strength and security at a time when many other intermediary lenders have disappeared. This will ensure Accord emerges from these difficult market conditions even stronger than before.

MA: What are your predictions for the mortgage industry in the year ahead?

IS: I think it will just be a case of head down and get on with it. We will see the survivors on the other side. Those that remain pro-active will survive.

MA: Is there anything you think could be improved in the industry?

IS: I believe there is a need for continual dialogue among all parts of the industry but particularly between lenders and intermediaries. There is some sterling work being done by the Building Societies Association, Council of Mortgage Lenders and Intermediary Mortgage Lenders Association. The work done by Chris Cummings and his team at the Association of Mortgage Intermediaries is a great example of engaging with the various stake holders in the UK mortgage market for the common good of all. It is important we all engage and have dialogue and we try to understand each others perspective in this. Lenders are dealing with a situation as much as advisers are and trying to adjust to that. They are not trying to find ways to make life difficult for anybody because I can assure you life is difficult enough just managing the business through the issues we all face.

MA: Many intermediaries have recently announced restructure and redundancies. Do you think this is a cause for concern for advisers?

IS: I do not see any cause for concern. No business in this industry is immune from what is going on whether you are a lender, packager, intermediary, a small one band or a large organisation with 200 advisers. Transaction levels are down, income is under extreme pressure but opportunities exist for those that are bold and brave enough to seek out those opportunities.

MA: What is the biggest challenge you have ever faced?

IS: The London Marathon. I had never ran more than five miles in my life so to get myself round a marathon at the age of 38 was a hell of a challenge. At 18 miles I was struggling and was overtaken by a caterpillar, a bunch of 20 or so students had tied themselves together dressed as a caterpillar. I had very little energy left and thought I had two options. Do I break the caterpillars legs or do I knuckle down and complete the course? I eventually completed the course, though some way behind the caterpillar. I am glad I did it and can tick that box but I have absolutely no intention of putting myself through that pain again.

MA:What is the most important thing you have learnt?

IS: There are three things. Never lose sight of your customer and continually engage with them to really get to know how they operate and how you can work together to achieve your objectives. You may have the best strategy in the world but if you do not spend time with your customers and take your eye off the ball the customer will have gone elsewhere. The second thing is do not lose sight of your own people. They are very much the face of the business and need clear direction and support otherwise you are not going to execute your strategy. And third keep thing is keep it simple and get the basics right.

MA: What has the response been to your announcement regarding not paying procuration fees for remortgaging onto credit repair products and notice periods?

IS: There has been a positive reaction, in particular from our key partners who recognise Accord remains one of only a small number of lenders that will pay a procuration fee to intermediaries that are actively involved in the retention of existing clients. The changes announced only affect retention of existing clients, not new business, and it reinforces our commitment to intermediaries and continues to recognise the importance of the relationship between the intermediary and their client. I would suggest this goes further than most if not any other lender. In addition we have extended the notice period we give advisers of their client approaching the end of their product from 90 days to 120 days.

MA: Do you think some lenders are in danger of alienating advisers or do advisers need to adapt their businesses?

IS: That is for each individual lender to answer. What I would say from Accord's perspective is we have now been operating for more than five years in a highly competitive intermediary mortgage market. In that time we have always aimed to be open and transparent in our dealings with intermediaries and our key lending partners. We have not always got everything right but we have always engaged with the industry and listened carefully to what our intermediary customers are looking for in a lender. We have also had to adapt to changes in the market and the one thing you can be sure of is change is continual and you need to keep very close to your intermediary partners and market developments. As for advisers, I am aware of many advisers that have already adapted to lower transactional levels and are making a success out of very difficult conditions. I take my hat off to them and take strength from the fact that such a high percentage of mortgage business written continues to be written by intermediaries. Clients have a need that clearly intermediaries are well placed to cater for, especially in this market where products and criteria are changing so rapidly.

MA: How do you think advisers need to adapt under the current market conditions?

IS: Advisers have an opportunity to protect income streams by ensuring clients receive a more rounded service. Where previously the main focus was placed solely on securing the mortgage, now, the adviser should have more time to review the wider issues of the client and catering for their wider financial and protection needs. In addition an opportunity exists for advisers to engage with the clients they already have. Sometimes too much time has been spent seeking new business sources when many already have a deep pool of existing clients from where they should also be looking for opportunities. This is why Accord, in developing our retention strategy, is communicating with the originating adviser some 120 days in advance of their client's mortgage product maturing and why we pay procuration fees if the adviser retains the customer with ourselves.

MA: What more could lenders do to demonstrate they are committed to intermediaries?

IS: Again, that is for each lender to decide for themselves. That said I do sometimes wonder what intermediaries make of lenders that self proclaim intermediaries are at the heart of everything they do. If I was an adviser I would simply be asking what each lender's retention strategy is and does that involve the intermediary in a communication process and reward the adviser for the work they do? Suffice to say Accord will continue to recognise the invaluable service provided by intermediaries though we will be working even harder with our key partners and understanding the value each brings.