Scottish buyers vs. English buyers: What every broker needs to know

'You'd think some brokers had crawled out of a coal mine the way they go on about how difficult it is'

Scottish buyers vs. English buyers: What every broker needs to know

The mortgage industry is no stranger to competition, challenges, and change, but for Robin Purdie (pictured), of Borders Mortgage Hub, relocating his business from Edinburgh to the rural landscape of Galashiels in 2019 proved to be a game-changer. Reflecting on his move, Purdie told Mortgage Introducer that the rural setting allowed his team to exploit the gap in the market that existed there.

“Our company was previously based in Edinburgh,” Purdie told Mortgage Introducer, noting that this move wasn’t taken lightly. “We still have a really big client bank there with whom we absolutely transact and look after. I re-headquartered it in Galashiels in 2019. I’m from this region originally, and there wasn’t that much competition here.

“Being rural, there’s more opportunities than challenges. Because challenges for mortgage brokers are challenges irrespective of where you're based geographically. And the main challenge, almost the one and only challenge, is the obtaining of clients – whether you're based in central London, Edinburgh or Galashiels. If you're a mortgage broker the nuts and bolts, particularly when you're experienced, is winning new clients. So [moving here], it was a gap-in-the-market situation to be honest.” 

‘Edinburgh in particular is awash with mortgage brokers’

And Purdie isn’t alone in his love for a more rural lifestyle. According to research from The Times, 28% of young city dwellers and 34% from towns and suburbs are planning to move to more rural areas, with countryside house prices having risen nearly twice as fast as those in urban areas over the last five years. For brokers like Purdie, this influx of younger buyers has opened up a whole new niche of clients. And, unlike Edinburgh where brokers compete in a crowded marketplace, Galashiels is relatively new to this boom.

“Edinburgh in particular is awash with mortgage brokers,” Purdie said. “And in Galashiels the dynamic is entirely different. We still are prominent and active in Edinburgh. I moved here, actually because I'm from this region originally and also there wasn't that much [competition] here.”

Despite the change in location, for Purdie his clients still crave that all important – though somewhat traditional – aspect of brokering; the good, old human touch.

“We have a high street presence. We have a shop front with floor-to-ceiling windows and a walk-in policy. And I think that works better in a geographical location that’s more rural than it does necessarily in city centres,” he told Mortgage Introducer. 

It’s this sense of community that smaller towns foster plays a pivotal role in the firm’s success.

“People still want to deal with people; they still like to shop local,” Purdie said. This sentiment, combined with his firm’s approachable storefront model, builds a level of trust and visibility that’s harder to achieve in urban settings.

The difference between Scottish and English buyers?

“That alone helps to drive business to the door,” he told Mortgage Introducer, highlighting the importance of face-to-face interactions in fostering client relationships. For Purdie, the real differentiation in location terms lies in understanding market nuances and catering to unique buyer needs. A significant distinction he observes is between Scottish and English property buyers – driven largely by the contrasting legal frameworks in the two countries.

“People are more confident when they purchase in Scotland than my clients when they purchase in England,” he said. “[Because] there’s still so many pitfalls that could occur [in England], whereas there’s very few in Scotland. Dealing with Scottish buyers, there is less angst and trepidation, mainly due to the existence of home reports. Whereas people south of the border, they tend to be more anxious until the survey has been done, and contracts have been exchanged. I thank my lucky stars every single day that I’m a broker that is predominantly in Scotland, that does a wee bit in England, rather than the other way around.”

Purdie also stresses the importance of knowing one’s limits, particularly when dealing with niche or highly specialized cases. His firm consciously avoids areas like self-build mortgages and equity release, preferring instead to refer these clients to specialists.

“We stopped doing self-build a while ago because you’re doing them that infrequently. They’re really niche,” he said, emphasizing that such cases could ultimately harm clients if handled without deep expertise. “It’s in the client’s best interest for them to use a specialist self-build broker. And, if there’s a buyer in England that is buying in Scotland, I would always say, use a Scottish broker for this purchase. Unless they have a pretty in-depth knowledge of the Scottish system, this could go spectacularly wrong.”

‘You’d think some brokers had just crawled out of a coal mine’

Yet, despite the challenges, Purdie remains down-to-earth about his profession.

“CMAP is not your doctor training or your law exams,” he said. “At times, particularly on social media and LinkedIn, you’d think some brokers had just crawled out of a coal mine the way they go on about how difficult it is and whatnot. I'm maybe coming at this from the point of view that I'm based in Scotland, and I don't have some of the issues that our English counterparts do

“We’re fortunate to operate in a market that values local service and personal connections.”