We know that mortgage advisers are doing a better job than ever at finding incredible mortgages for their clients, but with such a wide range of client needs and circumstances, it’s impossible to have all bases covered.
So, what are some of the most common gaps and what are the opportunities missed as a result?
There will be many out there thinking that they really do have all bases covered for their clients. If you are doing this all without a partner, you simply cannot cover the market well in an effective and efficient manner; it’s just too large and too diverse. Not only that, but the pace of change in this industry is rapid, so keeping up with things really takes a lot of regular experience in the sector.
Of course, many brokers have a narrow field of clients, allowing them to specialise and focus on those cases. A great example would be a mortgage broker affiliated to an IFA, dealing with high-value professional mortgage clients with clean credit and bags of equity.
What happens when the client then refers their friend or family member who is not quite in the same position? What happens when they refer their commercial mortgage to the adviser? Very different scenarios. Your gaps will differ, but every adviser will have them.
Mind over mortgages: why we need to look after intermediaries’ mental health
Sponsored by Halifax Intermediaries
What are the most common missed opportunities?
The high street lenders will write an awful lot more ‘specialist’ business than they get credit for. It’s not always easy to know or find out, but as specialist mortgage experts, we are often surprised by the great outcomes we get with these lenders.
Why are brokers missing out? The number of times you will come across the relevant scenarios annually is small and it is almost impossible to check every prime lender personally when the sourcing and criteria platforms do not always light the way. Complex guarantees, adverse, construction and even expatriates can all be catered for in certain circumstances.
Complex residential cases can also be incredibly inefficient to source properly. For a wide range of reasons, many of these clients get pushed aside in favour of ‘lower-hanging fruit’.
The opposite is also true, with many advisers working tirelessly on cases that don’t go anywhere; a situation that is more common in downturns and is one of the reasons advisers are always busy, regardless of the market. A quick ‘no’ can be invaluable to you and the clients, but only if ‘no’ really is the right answer. Otherwise, the client is not getting the service or the outcome they need.
Affordability stretches on fund raising and debt consolidation always create problems. Often, these cases fit into the above complex residential category, but secured loans really can come into their own in this space.
Of course, it’s a very different process, but with the right support, advisers able to transact in this area can do a great job for their clients. For those that cannot advise, referring makes sense for you and your clients.
Why does this happen?
Often, in trying to do the right thing for the client or the adviser or their business, brokers end up wasting time or opportunities. Much of this boils down to brokers doing what they do best, which will look very different business by business. It’s not about ability nor even understanding, it’s about efficiency and being as effective as you can be for you and your clients.
How can you make the most of your opportunities and your time?
It’s a great reason to keep working on your continuous professional development and to keep learning and stretching yourself. Broadening your coverage will help, but it’s only part of the picture.
When you find your efficiency and impact dropping in specific scenarios, partnering with specialists will make a big difference to your time and, importantly, will improve those all-important client outcomes.
