Name: Lee Trett
Age: 43
Location: Wirral
Firm: Echo Finance, Leadcrowd, Money Helpdesk
Education: Fully-qualified mortgage, protection and equity release adviser. CeMAP and CeRER. FCA approved Executive Director (SMF3) with Compliance Oversight (SMF16)
Specialty: Mortgages, protection and compliance
Interests: Lead generation, football (Everton supporter). Played bass in a rock band. F1. Tech and crypto developments.
Professional background and inspiration
- What first inspired you to pursue a career in mortgage advice, and how did that evolve into co-founding Echo Finance?
It played into my skillset, which is a combination of communication, strong understanding of tech, and an appreciation for the nature of regulated sales. Once my competence grew, I felt I had more to give to the industry. John and I were passionate about offering something new that would improve the industry and provide the best possible customer outcomes.
- You’ve been in the industry since 2007 – how has the mortgage market changed most dramatically in that time?
There has been far more focus on consumer rights since 2007. Obviously following 2008 the FCA became more focussed on consumer rights. The Mortgage Market Review in 2014 only furthered that. I think these are positive changes that have led to far better consumer outcomes across the industry over the past decade. The requirement for all advisers to be registered and the need to provide registered references between firms has provided both firms and consumers with a more reliable outcome.
Aside from regulatory changes, there have been major advancements in tech. The opportunities created by improved collaborative tech between lenders and across the industry have streamlined processes and made the whole application process much smoother.
- What motivated you and John Tarazi to start Echo Finance back in 2012, and what was your vision for the business?
Our vision was always to build a robust compliant model with efficient systems to provide a solid foundation and strong infrastructure. We spent a long time perfecting our business model before beginning to expand operations only in the last 5-6 years. Developing LeadCrowd has helped us to grow into a self-sufficient firm which covers all bases of the industry.
- Echo Finance has grown steadily over the years – what do you think has been key to that success?
Patience and perseverance. Forming a solid foundation before leaping into continued growth, to ensure that we can retain that success and future-proof the organisation.
- How do you balance your role as both adviser and senior manager within the firm?
John still advises, but I don’t now. I am, however, proactive about keeping up with the latest criteria changes and knowing the day-to-day operations of the industry.
Industry insights
- What are some of the biggest challenges facing UK mortgage brokers today?
I think that there is a current trend for mortgage advisers to be persuaded to work for Appointed Representatives (AR) instead of forging their own path. This ties their hands to a certain degree, as they can only offer those services approved by their respective network.
As well as providing the brokers with limitations on their income potential and personal experience, I don’t feel that this provides the best outcome for consumers. Brokers who may be unable to offer the most suitable product for a specific demographic of clients won’t be serving them as well as they could be.
- How do you see technology reshaping the mortgage advice process over the next five years?
AI will play a big role in the next 5 years, as it will increase the speed with which clients can be served. Automated processes will make it quicker and easier to place cases, and brokers should be able to help more consumers as a result.
However, there is a clear definition of how AI can help within the industry, and it’s important that it’s implemented alongside human knowledge, experience and decision making. I feel that the advice element, especially for complex cases, will remain firmly with human advisers.
- You also founded LeadCrowd – how does that business complement the work you do at Echo Finance?
LeadCrowd, and the newly established Money Helpdesk provide a substantial number of leads to the brokers we work with. This attracts the right type of talent to work with us, allowing us to continue to expand as a successful Fintech enterprise.
- What trends are you currently seeing in the residential mortgage market, particularly among first-time buyers?
First-time buyers have been taking shorter term fixed deals recently, with 49.1% of our customers opting for two-year deal terms in the past year. We’ve also seen many more varying income types and applicants with complex income types. Not everyone earns their income from a traditional employed job these days, so lenders are beginning to recognise self-employed income from newer careers such as influencers and similar content creator roles.
- How do you approach client education when it comes to complex products like equity release?
We like to aid this type of client visually, ensuring we share screens during remote video calls to ensure complete transparency. We also allow additional time to digest the terms and other important information related to this type of product. We advise later life lending clients to ensure that they seek independent legal advice and sign contracts with a face to face solicitor. If necessary we sometimes recommend getting family involved where the client is comfortable to do so.
Our new platform Money Helpdesk is written and reviewed by experts in the field and provides clear information on a wide range of products. This allows consumers time to think about their needs and understand products better before reaching out to us for further advice and support.
Industry insights
- What’s your philosophy when it comes to building and leading a successful advisory team?
Our philosophy is that our brokers are partners, not employees. They don’t work for us, they work with us. We provide them with the tools they need to succeed, whilst allowing them the autonomy to operate how and when they choose. We like to think of ourselves as the Uber of the mortgage world.
We also think it’s important to stay actively involved and visible as managers, so both John and I attend a weekly meeting with the entire team. We also advocate regular team building and social events, both remotely and in person.
- How important is collaboration and partnership in Echo Finance’s culture?
We are Directly Authorised, but we do collaborate with sourcing partners and compliance partners. We also prioritise due diligence with those we partner with and make a priority of building relationships with reliable partners.
- What advice would you give to someone looking to start their own brokerage today?
Make sure they are fully competent and know what they’re taking on before they start. I would highly recommend working for a directly authorised firm for a period of 3-5 years before branching out on your own. You can learn a lot in this time and it will give you a solid foundation to build from.
Once you begin, it’s key to ensure you have robust policies, processes and a complete infrastructure in place first.
Personal and future outlook
- What has been the most rewarding moment of your career so far?
Attracting talent to work with us. People buying into our philosophy and particularly staying with us is very rewarding.
- When you’re not advising clients or running businesses, how do you like to spend your time?
Spending time with family. I also have a range of hobbies including sports (F1, football) and music. I also believe that if you enjoy your job you never really switch off. I love strategic planning and coming up with new ideas in financial services, especially when they relate to tech.
