Name: Luther Yeates
Age: 29
Location: Bristol
Qualification Year: 2017
Firm: Orton Financial
Specialty: Complex requirements, i.e. working abroad, properties with unusual features which exclude the high street
Education: Banking and Finance degree, self-studied and passed CeMap within a few months of working full-time
Interests: Growing up in Cornwall, I’ve always had an interest in water sports but since forming Orton, I have more time for activities outside of work. Surfing has become a regular part of my routine, and I’ve also taken swimming more seriously. In fact, I have my first serious event, the Bantham Swoosh 6km river swim, on the 12th of July.
Beyond water sports, padel has integrated well into the corporate world. Last year, our Christmas party was a padel event and we actively seek to arrange and attend these as a company. I’ve also recently taken up Kitesurfing and have an exciting week-long trip in Egypt next month.
Training and Career Beginnings
- How did your experiences growing up shape your approach to business today?
I was raised in an environment with limited thrills, where value for money was a priority. Holidays meant going away in a caravan and I didn’t take my first flight abroad until college. This mindset has been carried into my approach with clients. I always seek to provide what I feel is fair value for money. It isn’t and will never be my goal to get rich quick off an individual client. Instead, I favour relationships that lead to future business and referrals.
This mindset also drove me to look for alternative solutions to the most expensive transactions in our industry (typically bridging finance or equity release).
- What drew you to study Banking and Finance, and did you always envision a career in mortgages?
I was split between wanting to work for myself or go to university. At that point, I didn’t have the skillset and experience I do today. The degree felt broad in topic, but still covered the fundamentals of accounting, statistics and business. I felt it would open the door to the finance world – I just wasn’t sure in what area.
- Joining Clifton Private Finance as their first trainee must have been a leap of faith. What motivated you to take on that challenge?
I had an interview for an IFA role elsewhere, but I didn’t feel the firm was a good culture fit. I also interviewed for a well-known national mortgage brokerage chain. It felt like a heavy sales environment which wasn’t the role I was looking for either.
Clifton was a relatively small company, with the founders interviewing me and taking a genuine interest in my past and future. I felt more aligned with their ethos and accepted a role there.
- You have carved out a niche in expat mortgages at Clifton Private Finance – what inspired you to tackle a market others overlooked?
I was aware that we needed to add value above and beyond the traditional mortgage broker who worked for, or with their local estate agent. A market that isn’t well served by our industry is one where consumers can be exploited.
I saw the opportunity to help clients who had relocated overseas and were not well served because no sourcing system can accurately provide a mortgage adviser with the best advice.
There are several lenders who don’t report to these systems, so you need to find the lenders manually and build relationships with them. You then need to complete a manual assessment and come to a conclusion based on knowledge and experience.
You also need to weigh in experience with these lenders, as some will advertise their ability to accept a certain scenario, but it is often beyond the capability of their underwriters to understand this.
Most of these transactions are regulated, so we have to be able to justify each and every decision we take.
- Can you share the story behind securing your first major deal?
One of the first major deals I secured was a two-part transaction. I believe this was my second or third transaction and the loan was approximately £400k.
I arranged a bridging loan for a client who needed to purchase a dilapidated property as it needed extensive renovation, I then refinanced the bridging loan to a residential mortgage, completing a title-split, as they had decided to sell off some of the land.
It still isn’t common for a bridging adviser to also arrange the long-term solution as well. But it ensures a strong duty of care, where we can solve the short and long-term requirements.
Launching Orton Financial
What drove you to step away from a successful role at Clifton and establish Orton Financial at the age of 26?
I had reached a point where I was maintaining a large client book and had never had consistent administration support. I was also renovating a property at the time, so life was very full-on. There were changes I could never make as an employee and the company was concentrating efforts in expanding their bridging proposition. On this basis, I decided it was an appropriate time to step away and invest my energy in growing my own team and firm.
I wanted to establish a firm where I could provide myself with more flexibility and a better work-life balance. This is something I have also ensured my employees benefit from, with additional holiday allowances and flexibility over working hours as standard.
- Starting your own firm so young, how did you navigate the doubts – both external and internal – about securing FCA approval and building credibility?
I was very confident in my ability to navigate the mortgage market. I had sold my property to fund the founding of the company and support myself through the growth period. I had never given the rejection of the approval much thought, as I knew I had an exemplary record with the FCA.
GDPR meant you could no longer leave a firm and take a book of clients with you. But I knew if I was placed in front of a prospective client I would do well. The hardest part was making clients aware of our existence in a crowded market full of brokerages. Orton was also new to the market and had no history behind it, so building credibility was hard.
- Orton Financial prides itself on bespoke solutions rather than sales-driven advice. Why is this philosophy so important to you?
Absolutely. I feel sales targets can create a culture of bad practice and advice if applied incorrectly. If I targeted staff on a % of clients who need to take an insurance policy, as is common in the industry, I would create an environment where clients are sold products they don’t need or want. I’ve also heard of instances where advisers start asking friends or family to take out policies.
I also want someone to have the confidence to say no. Sometimes, the worst thing you can do is promise someone something which isn’t achievable. I will often signpost clients to either directly speak to their lender, or consider another solution that a broker can’t offer. I don’t want someone to feel like they have to do business with everyone they speak to.
Client Focus and Innovation
- What’s the key to unlocking solutions others miss?
Don’t be afraid to challenge a lender, surveyor or even the solicitor – and make sure you understand your client and their property in as much detail.
I’ve lost count of the times we have told a bank they are wrong and had a decision overturned. This is only becoming more common, as high-street lenders seek new business opportunities and relax their lending criteria.
We often find ourselves providing advice to the bank as much as the client. We are here to support the underwriter in signing off a loan, which won’t create an issue for them in the future. We work on the assumption that every case will be audited.
- How do you build and maintain trust with high-net-worth clients, especially those with complex financial backgrounds or international incomes?
Most clients will judge you based on knowledge and outcome. If you can have an honest conversation from the offset about what you can do, what you need to check and what they can expect, you start to garner trust.
The largest mortgage I arranged was a £13 million loan. It was for a client who was reluctant to provide any information to the administration team that handled new enquiries. So, I phoned the client and they soon opened up about their situation and requirements. We completed the loan with the lender who I quoted from the first call.
- You’ve partnered with Regency FX to offer currency exchange solutions – how critical is this kind of holistic approach to serving your clients?
We have historically limited our partnerships, as we don’t want clients to face what feels like hidden costs. We have solicitor referrals, but generally, don’t look to receive a fee for this. As the fee only increases the cost or decreases the service.
Regency FX provides a great solution for clients, as we feel they provide genuine value. Typically offering forex services that undercut the high street lenders. In that sense, it’s a win-win, especially with a large number of clients overseas.
Leadership and Vision
- What lessons from your time at Clifton have shaped how you lead Orton Financial today?
Working at Clifton was very isolated. You would work on your own cases but didn’t really have a great deal of collaboration. The only time I would really be involved in another adviser’s case would be if there was an issue that needed to be resolved. I would always be happy to help, as ultimately, there is a client who may have their life on hold until their transaction is complete.
There was also a culture of working long and late hours. I had to re-discover my passions outside of work when I founded Orton, and this is something I’m keen to garner in any new staff coming in.
My administrator is running a marathon for a personal cause this year and I have provided some extra paid holiday to help with training and recovery.
I like us to discuss the cases we are working on. Collaboration and the sharing of ideas help to make us better brokers and remove individualism in how we operate.
- As Orton Financial grows, what’s your long-term vision for the firm? Are there new markets or services you’re eager to explore?
I intend to grow Orton organically. The current growth of staff is based on a new-to-industry approach. This means that we don’t have to unwind another firm’s modus operandi and we can get it right from the offset.
Sometimes, what we see as bad advice is just the limitations of knowledge. Some lenders can only be accessed where you have an existing relationship like private banks. It would be great to eventually create a network of appointed representatives, so we can share our knowledge and reach a greater number of people.
The current plans are to grow the broker and administration team. With a target of at least two new members of staff this year, or more if we continue to accelerate in business volume.
