Category: Mortgage
As we wind down the year and look ahead to 2017 and what is likely to be another interesting 12 months for the mortgage market, it is a good opportunity to look back at what has been an eventful 2016.
Whether dealing with the impact of a scheduled change in housing policy, or reacting to surprise announcements, we have remained resilient and worked together to ensure you are up to date and able to provide the same first-class advice to your clients.
But what events had the biggest impact on the mortgage market and how do they fit in with other alterations facing the industry?
March: Mortgage Credit Directive (MCD)
Put in place to create a framework of conduct rules, the MCD is a piece of European legislation designed to foster a single market to protect consumers across the continent. The requirements came into force on March 21st and lenders then chose to either move straight to a European Standardised Information Sheet (ESIS) or a KFI+ on a temporary basis.
But now that the UK has voted to leave the EU, the MCD has become another future consideration for the market. Experts now believe that the MCD could well be up for negotiation following Brexit, with some calling for it to be integrated into the exit strategy by the Government and to use the opportunity to implement a set of rules better suited to the UK market.
April: Changes to Stamp Duty Land Tax
When it was announced that the stamp duty surcharge on BTL and second homes would increase by 3% on 1st April 2016, a surge of investors pushed to ensure their deals were completed before the deadline. This was a big move by the government, with relatively little warning to the market given it was only announced in the 2015 autumn statement.
But despite industry predictions that the change would greatly curb the BTL market, the sector has remained buoyant and an October report from Rightmove shows that BTL enquiries are up 30% since May’s slight slump following the rush.
June: EU Referendum and “Brexit”
Despite only representing the decision to leave the EU, the shockwaves of the referendum result reverberated around the country and left many pondering the effect the eventual activation of Article 50 could have on the mortgage market. What did follow was wild fluctuations in sterling, stock prices and shifts in consumer confidence.
But advisers have generally found that consumer appetite remains strong despite the uncertainty that followed the Brexit decision. It is likely that we as a nation will have a better understanding of the possible effects that the actual exit itself will have on the industry, once it comes closer to realisation.
October: PRA Paper on Underwriting Standards
Technically known as the CP11/16 paper, the Prudential Regulation Authority’s (PRA) announcement followed a consultation on underwriting standards within the BTL market released in March 2016. Since the release of the official document in October, many have been looking at how these standards will fit in with the other BTL changes, such as stamp duty and next year’s changes in tax relief.
Now that the PRA have issued its supervisory statement on BTL underwriting standards, relevant firms will now have to apply affordability testing and use a sufficient Income Cover Ratio to determine whether personal income is adequate to cover mortgage repayments.
December: Help to Buy 2
With confirmation that Help to Buy 2, or the Help to Buy: Mortgage Guarantee Scheme, is to be concluded at the end of 2016, many are looking ahead to the market and asking whether first-time buyers will be sufficiently supported going forward.
Despite the forewarnings of when each branch of Help to Buy would end, there has been some confusion over whether all Help to Buy schemes are ending. The good news is the Help to Buy: Equity Loan Scheme still has several years left and early signs signify that lenders are now offering high LTV mortgages, which experts hope will negate the impact on the market of ending Help to Buy 2.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
The Melton Building Society and its subsidiary MBS Lending have joined the Mortgage Intelligence lender panel. The new partnership will see both network and mortgage club members given access to the Society’s flexible approach to lending and niche product range.
The Melton offers a range of residential mortgages up to 95% LTV for purchase and remortgage, alongside niche lending products which include buy-to-let, holiday let, self-build, shared ownership and short-term lending, with credit repair mortgages offered through the MBS Lending brand.
Nicola Alvarez, director of sales and marketing at the Melton, said: “Our flexible approach to lending offers a compelling alternative for Mortgage Intelligence intermediaries with personal underwriting supported by a dedicated broker support team and innovative niche products to meet the varying needs of customers.”
Sally Laker, managing director at Mortgage Intelligence, added: “We are delighted to have further enhanced our lending panel by adding The Melton Building Society and its subsidiary MBS Lending. These latest additions further demonstrates our commitment to delivering a competitive and comprehensive panel, which is reflective of the market and the needs of both our Appointed Representatives and Directly Authorised members.”
ENDS
For further information please contact Jane Gilhespy, Communications Manager, the Melton on 01664 414141 or email j.gilhespy@mmbs.co.uk.
Note to editors:
The Melton Group incorporates the Melton Building Society, MBS Lending Ltd and MMBS Trading Ltd. Established in 1875, Melton Mowbray Building Society is a mutual building society with branches in Melton Mowbray in Leicestershire, Grantham in Lincolnshire and Oakham in Rutland. The Melton is the 25th largest building society in the UK. The Melton offers mortgages, savings and insurance and investment solutions.
About Mortgage Intelligence Holdings: Mortgage Intelligence Holdings was acquired by Countrywide in April 2011, the UK’s largest mortgage broker and property services Group. The following brands operate under Mortgage Intelligence Holdings.
Mortgage Intelligence and Mortgage Next: Established in 1996, Mortgage Intelligence, which merged with Mortgage Next in 2009, has become one of the UK’s leading mortgage networks. They offer award winning mortgage and insurance services to over 400 appointed representatives. Both networks focus on high quality of service and support offered to their intermediaries.
FYB Network: Mortgage Intelligence Holdings acquired Life and Easy trading as FYB Network in September 2012. FYB’s brand joined Mortgage Intelligence and Mortgage Next brands under the umbrella of Mortgage Intelligence Holdings Ltd. They offer both mortgages and insurance services. They were originally founded in 2004 and became a fully authorised network in May 2007.
Next Intelligence: Next Intelligence launched as a new brand in April 2011, bringing together Mortgage Intelligence and Mortgage Next’s directly authorised clubs which were both established in 1996. They offer premium brokers services to over 3500 mortgage intermediaries including mortgages, general insurance and a new protection panel which was launched in September 2011.
For media queries, please contact Countrywide Press Office, +44(0)7721 439043
Magellan Homeloans, the specialist mortgage lender, has been added to the Next Intelligence mortgage club lending panel.
This new partnership will enable Directly Authorised members of Next Intelligence to access Magellan’s full range of specialist mortgage products which provide greater solutions for those unable to secure a mortgage from high street lenders.
(Simon Read, Managing Director or Jason Neale, Sales Director), at Magellan Homeloans said: “We are delighted to be teaming up with Next Intelligence in order to bring our unique range of specialist lending products starting with rates from 3.21% to their Directly Authorised members.
Our business development team are really looking forward to working with the Next Intelligence team and DA firms to help increase their incremental income by demonstrating how to turn their declines into completions as well as helping members take advantage of the huge opportunities available in the specialist lending sector.”
Sally Laker, managing director said: “Since launching Magellan Homeloans to our Appointed Representatives last year, advisers have increasingly looked to their specialist mortgage products to help clients that have been unable to secure mortgage finance elsewhere.
“For this reason we are delighted to be the first mortgage club to be extending Magellan’s lending proposition to the Directly Authorised market.”
Mortgage intermediaries can obtain further information at: www.magellanhomeloans.co.uk
**ends**
About Mortgage Intelligence Holdings: Mortgage Intelligence Holdings was acquired by Countrywide in April 2011, the UK’s largest mortgage broker and property services Group. The following brands operate under Mortgage Intelligence Holdings.
Mortgage Intelligence and Mortgage Next: Established in 1996, Mortgage Intelligence, which merged with Mortgage Next in 2009, has become one of the UK’s leading mortgage networks. They offer award winning mortgage and insurance services to over 400 appointed representatives. Both networks focus on high quality of service and support offered to their intermediaries.
FYB Network: Mortgage Intelligence Holdings acquired Life and Easy trading as FYB Network in September 2012. FYB’s brand joined Mortgage Intelligence and Mortgage Next brands under the umbrella of Mortgage Intelligence Holdings Ltd. They offer both mortgages and insurance services. They were originally founded in 2004 and became a fully authorised network in May 2007.
Next Intelligence: Next Intelligence launched as a new brand in April 2011, bringing together Mortgage Intelligence and Mortgage Next’s directly authorised clubs which were both established in 1996. They offer premium brokers services to over 3500 mortgage intermediaries including mortgages, general insurance and a new protection panel which was launched in September 2011.
For media queries, please contact Countrywide Press office, +44(0)7721 439043
By Stephanie Charman, Head of Mortgages and Insurance at Mortgage Intelligence
Looking ahead to the mortgage market in 2017, we have compiled a short list of key changes and events to keep your eye on. This will help keep you and your clients ahead of the game in 2017.
January 2017: Help to Buy 2 no more!
Now that the government has confirmed it will end the Help to Buy: Mortgage Guarantee Scheme, or Help to Buy 2, at the end of 2016, many are wondering what the future holds for the first-time buyer market after the scheme has helped so many people onto the property ladder.
Whether the market is ready for life without Help to Buy 2 is not fully clear, even though a growing number of lenders now have, or will have 95% products available outside of the Help to Buy scheme.
The 2017 autumn statement may indeed look to address the risk to the high LTV market, perhaps with the addition or alteration of housing schemes. Either way, the support of the low deposit arena is crucial, with the current affordability issues facing first-time buyers in the UK.
March 2017: Budget Speech
One of the most important events in the industry calendar will be Chancellor Philip Hammond’s annual Budget speech. After a turbulent few months post-BREXIT some experts are preparing themselves for more changes as the government tackles the possible consequences of leaving the EU.
April 2017: Tax relief changes for Buy to Let
The tax relief that landlords of residential properties get for finance costs will be restricted to 20%, which will be gradually introduced from April 2017 and will be fully in place by 6 April 2020.
These changes could have implications for landlords’ tax positions, but a basic rate tax payer may not see an impact. However, buy-to-let property rental income could now affect the overall tax position, which is the unintended consequence of moving from being a basic rate taxpayer to a higher rate taxpayer.
Limited companies, set up for the sole purpose of buying and letting property, will not be affected by the changes. Therefore some landlords are considering setting up companies to mitigate the personal impact of the tax relief changes.
April 2017: Lifetime ISA
The new Lifetime ISA will launch in April 2017 and allow people to save up to £4000 a year towards buying their first property or for retirement with a 25% government bonus.
Many people may be more sensitive to the details after some people felt slightly misled by information regarding the original Help to Buy ISA and deposits on property. It is currently unclear how many accounts will be available in April 2017, as lenders are unable to commit to firm launch dates due to delays on account details from the government.
November 2017: Autumn Statement
Chancellors have been required to present two economic updates a year since 1976. Yet, there are reports that the autumn statement may be scaled back or even scraped in the future. Chancellor Philip Hammond wants to move away from ‘gimmicks’ and focus on fiscal forecasting. But some suggest this may be an impossible task with the uncertainty of BREXIT.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Managing Director Sally Laker looks at a recent scenario that highlights the importance of communication and case checking in the property chain.
Just when you think you have seen most events linked to a sale and purchase transaction, you realise that there is always an interesting story that reminds you of the need to be vigilant. Recently a friend decided to downsize from their big family home to a newer property with no mortgage and to release some cash. The move took place but had turned out to be a nightmare for all. She assumed that this must happen all the time and was surprised that I had never come across it before.
In all there were seven people in the chain, only two with mortgages, and exchange was all set for a Thursday with completion on the following Monday. As soon as the removal vans were all loaded up everyone was waiting for the completion confirmation. They all received a phone call to say that one of the lenders had decided to carry out an ‘audit’ and therefore could not complete on that day, and they would be advised once they could confirm a completion date! So with a completely empty house, and everything in the removal van, they ended up having to pay an additional £1600 for storage as completion wasn’t until three days later. My thoughts were immediately that this must have been some sort of fraud or money laundering alert, right at the last minute. I decided to look into what kind of reasons might have triggered the lender to impose the action at such a late point in the process.
Whilst unusual there are a number of possible reasons for the lenders actions.
It was unlikely to be money laundering because this would generally be checked and picked up by lenders before completion. This is one of the key reasons that lenders will stick to a panel of solicitors that they have approved.
It is possible that when the lender system screened the transaction that the outgoing accounts details hit a trigger that stopped the transaction from going ahead. Again, although not impossible, this would be unusual as this would normally have been thoroughly checked before getting to this stage – especially with an approved solicitor. The fraud screening system may have picked up that the bank account and sort code was linked to a previous fraud, and maybe the lender did not work from a closed panel of solicitors.
Alternatively, it could be an example of a “property hijack” or false positive match. This means that the applicant appeared to be the same person screened at application stage but on closer inspection they were not.
Another possible scenario is that a new piece of intelligence was received and it matched a past case that then concerned the lender about the collateral they were lending on. It is possible that the lender received information and, given their experience from the sequence of events, they suspected the person selling the property was not the owner. That would make it likely that the solicitor would be involved too.
New build is another area that lenders are currently concerned about, mainly regarding assignable contracts, also called “contracts of novation”. This is where a developer is selling his property via a middle man who has offered to take on, for example, 20 units at a reduced price. The middle man buys them for, say, £380k each rather than the developers asking price of £500k. The middle man is confident that he can sell them speedily, which in turn, frees up cash for the developer. They make an agreement between themselves and the middle man sells them at £450k each. The middle man offers the buyer a £50k cashback off the £500k purchase price on completion. That enables the buyer to apply for a 90% LTV mortgage as the purchase price is £500k, and a credit (cashback) of £50k is passed directly back to the buyer once completed.
This should normally be picked up by the solicitor who will notify the lender, as there is no buyer deposit. If the lender finds out about this prior to the completion it would mean that they had lost transparency on the deal, and an alert would be placed on that developer and that broker.
It is impossible to say what the real reason was, and it seems that all the transactions went through, but it is useful to know what can be hidden behind a seemingly normal transaction. This example is a very good reminder of how important it is to know who we are dealing with, and to carry out thorough checks in all cases.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Head of Mortgages and Insurance Stephanie Charman looks at what the future holds for the Buy to Let sector and asks what the industry can do to prepare.
Analysis of the Buy to Let market by the Council of Mortgage Lenders (CML) has predicted the possible future of the sector, including the impact of changes, potential consumer trends and actions to be taken by lenders. The study used rental and capital value data to evaluate the potential market impact of a general move towards enhanced underwriting criteria.
What will be the impact of the 2017 changes in tax relief?
The Buy to Let sector has been a big driving force behind much of the mortgage growth in recent years, but the CML are keen to highlight that the sector faces some big challenges in the near future. Some important policy alterations are upcoming, including the changes in tax relief to be phased in from 2017.
Not only could these changes affect volumes of business, but also change the way investors approach their portfolio plans. The main aim of most of the changes is to increase the cost, and therefore the incentive, of property investment, which in turn should decrease demand in the sector.
Is this the biggest upcoming change?
Despite the tax changes next year, the CML suggest that it will actually be changes in affordability testing on Buy to Let borrowing at higher interest cover ratios (ICRs) and stressed rates, which will have the biggest impact on Buy to Let.
Now that the Prudential Residential Authority (PRA) have issued its supervisory statement on underwriting standards for the Buy to Let sector, relevant firms will now have to apply affordability testing and use an ICR to determine whether personal income is sufficient to cover mortgage repayments.
Remortgaging accounts for a significant part of the Buy to Let market, and remortgaging capacity is driven in part by how much rents have changed since the original loan was taken out. Now that the PRA have issued the statement to deploy affordability testing, some consumers may find it harder to remortgage to another lender.
What will any changes in consumer behaviour look like?
The CML analysed the impact that the PRA statement could have on buying behaviour, using the new rules around ICRs and stressed rates on new lending and remortgage activity. The CML predicts that this change would see a shift in buying behaviour, to a focus on lower value, often higher yielding property, which would increase the collateral risk profile of new purchases.
What can the industry do to prepare for the future?
According to the CML, there is still very much a long-term case for investing in housing as part of a balanced portfolio, which means the Buy to Let market will continue to thrive despite changes and criteria adjustment. But the CML also suggests that with one in five house sales being property investment, there are worries among policymakers that sudden changes in investor demand could result in house price volatility.
The CML believe that overall, the market will see a moderation in the growth rate of Buy to Let lending in the short term, with the Council suggesting that lenders need to start considering tracking and improving the control of the collateral risk profile of any new Buy to Let lending. The CML believe the result of the PRA statement could be that more equity is injected in the market, with slower growth in lending volumes as a result.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephanie Charman looks at what the future holds for the Help to Buy schemes, which have helped so many people onto the property ladder.
Now that the government has confirmed it will end the Help to Buy: Mortgage Guarantee Scheme, or Help to Buy 2, at the end of 2016, many are wondering what the future holds for the first-time buyer market after the scheme has helped so many people onto the property ladder.
Launched in 2014, to help revitalise a sluggish high-LTV market and support first-time buyers, Help to Buy 2 was a scheme in which lenders could purchase a guarantee from the government to cover potential losses on high LTV loans. Should the borrower default, the lender could then claim back the money from the government on loans between 80 and 90 percent.
The announcement of Help to Buy 2’s conclusion has seen a rush of first-time buyers to the market. September saw the number of first-time buyer valuations rise by 18.7% year on year, outstripping the rise in remortgages and buy-to-let activity combined.
Has the Help to Buy package so far achieved its aim?
September’s figures reveal that between all the Help to Buy schemes, which included Shared Ownership and the Help to Buy ISA, over 185,000 people have been able to buy a new home. This was based on the number of completions that can be attributed to the schemes, of which 150,000 were for first-time buyers.
These figures suggests that the goal of the government’s Help to Buy package has mostly been achieved, in that it has helped those looking to get their first foot on the property ladder. This is supported by an average house price for purchases of £191,000, highlighting how the schemes have targeted responsible lending to first-time buyers who buy smaller and often cheaper properties.
According to the government, the Help to Buy ISA scheme has also helped more than 650,000 people save towards their own home. But recent negative publicity has asked whether the scheme is achieving its primary purpose, as the government bonus of 25% is only paid after the completion of a sale, rather than the payment of a deposits, which many argue was its original goal.
Is the market ready for life without Help to Buy 2?
The Chancellor said that despite the closure of Help to Buy 2, the scheme had been successful in achieving its aims, which was to fill the gap until lenders began offering higher LTV loans and the market bounced back. Mr Hammond believes this has now happened, with more than 30 lenders currently lending without the assistance of the scheme: “The mortgage market has become less reliant on the scheme as confidence has returned.”
But figures reveal a decline in the number of 95% LTV products in the market between March and August 2016, dropping from 270 to 225. This does however remain significantly higher than the 195 in August 2015, as well as figures from the Bank of England showing a small increase in business between 90% and 95% LTV.
So whether the market is ready for life without Help to Buy 2 is not fully clear. The autumn statement may indeed look to address the risk to the high LTV market, perhaps with the addition or alteration of housing schemes. Either way, the support of the low deposit arena is crucial, with the current affordability issues facing first-time buyers in the UK.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephanie Charman talks remortgages: a sector that has seen a recent surge in interest from consumers because of fixed-rate lender competition and an even lower Bank of England base rate
There is no doubt that “remortgage” is currently the word on advisers’ lips. Some are even seeing remortgages now making up nearly half of their total business. After recent CACI data also surprised many by revealing that the UK mortgage market is expected to see over £14bn worth of maturities in September 2016, the time for many of your clients to remortgage could be now.
Regular contact
Staying in regular contact with your clients is key to creating opportunities for them to save money through a remortgage. Reviewing products with your client when their mortgage is due to come to cessation, is also essential in maintaining business levels and ensuring that you are always in mind when it comes to your client and their finances.
Timing is key, and many advisers are finding that simply reminding clients that they are there to help them make the right decision is a winning strategy. Keeping an eye out for their lifestyle events can ensure you offer a review of their finances at the right time for them and you.
Rate changes
A rise in the Bank of England base interest rate (BBR), something not yet seen in years, would normally be the trigger for a remortgage rush, as borrowers grab a fixed rate before SVRs climb. Instead, it has conversely been the drop in BBR which has triggered a surge in remortgage opportunities, as lenders renew competition and offer even lower rates on fixed rate deals.
Switching to a new deal might not just save your client money, but also give them the opportunity to fix their interest rate to a low figure for the next several years. As a network, we saw a big increase in remortgage business compared with last year, which shows that advisers are already making the most of the opportunity to help their client move to a better deal.
Avoiding SVR
Standard Variable Rates, or “follow-on rates” as they are sometimes known, are currently sitting at somewhere between 3 and 7 per cent. Although these are still historically low, not all lenders have passed on the Bank of England base rate cut, so for some borrowers the margin between SVR and base rate has effectively increased. Meanwhile fixed rates continue to drop, which makes this an opportune time to remortgage for many clients to possibly secure a better deal and long term peace of mind.
Network and lender support
Many lenders have also improved their systems, underwriter access and general application process to make it as efficient as possible. They recognise that with advisers so busy at the moment, saving time wherever possible is paramount to ensuring brokers and their clients are able to make the most of the remortgage opportunities available.
Barclays amongst other lenders is making the most of the recent CACI data, offering an SVR comparison tool, to provide you with a complete overview of current SVRs that some of your clients may be paying.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephanie Charman highlights how Mortgage Intelligence has helped appointed representatives and Next Intelligence club members work through the number of changes in the BTL sector with additional support and services.
The BTL sector seems to have grown as fast as it has changed in recent years. There has been a raft of recent alterations to rules and guidance surrounding the sector, which has seen some complicated scenarios cropping up for advisers.
But we also know that BTL is a big part of what our advisers do at the moment, which is why we have done what we can to help them service clients effectively and grow their BTL business even further.
A winning combination
This year we have expanded our lender panel to ensure we provide a comprehensive offering for advisers in such a changing environment. We have several new lenders that have joined to provide new propositions and options for adviser clients, such as Fleet Mortgages and Kent Reliance who specialise in BTL lending.
But we also know that this makes understanding all the different lenders and what they offer a new challenge and keeping up to date can become time consuming. That is why advisers call our Broker Support Team to talk through the latest lenders. They are experts at knowing who might be able to help advisers in a variety of BTL scenarios.
We believe the winning combination of an expanding and comprehensive panel with our experts on the Broker Support Team will help more advisers not just service their clients effectively, but also save time calling around all the different lenders.
The hub of knowledge
Lenders are continuing to develop their criteria in response to market conditions and to prepare for future changes. We want to help advisers keep up to date with all the lender changes in the sector. That’s why we have created the fantastic new BTL Hub on Broker Zone, our adviser website for appointed representatives and club members.
This is the new home for BTL, where advisers can find everything they might need to understand any changes and get to grips with lender propositions and offerings. We also have recordings of all the latest BTL webinars, hosted by lenders, including Q&A with advisers.
With criteria changes a focus for many lenders in 2016, we have ensured that advisers are armed with all the latest knowledge to help clients. The BTL Hub is full of guides and datasheets on how lenders define a HMO, calculate affordability, exposure, rental calculations and general lender criteria and overviews.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Head of Sales and Marketing Sharon Mawby highlights the potential benefits of hosting a mortgage clinic in your local area
On the Marketing Department here at Mortgage Intelligence we have recently relaunched a support pack for advisers thinking of hosting mortgage clinics in their local area. These events are a fantastic way to invite people to meet you face to face and hear your expert insight on the industry. You can hold these events literally anywhere and we have known advisers to host mortgage clinics in places ranging from big office suites to supermarket staff rooms!
Helping advisers grow their business is a big part of what we do, which is why we ensure that all the collateral and support we offer is just what they need. The reason we have relaunched the support pack, is that we have seen a resurgence in interest from advisers to hold mortgage clinics to extend their services and expand their client base.
Why host a mortgage clinic?
Hosting events can be such a valuable way to generate new business and to showcase your expertise to local employers and their employees. Talking to staff within their workplace can open up new opportunities, help dispel consumer myths and worries, all with the added effect of getting to know you.
In uncertain times like this, with many buyers and movers wary of a market that is waiting to respond to recent events, a free consultation from a mortgage expert is rarely turned down. This gives you the opportunity to make yourself the adviser they turn to when they need advice and help arranging their mortgage.
Who will benefit?
Your mortgage clinic can help people understand the mortgage market and the terminology that surrounds the industry that leaves many confused and unsure. Explaining the latest schemes and accounts can help any first-time buyers onto the property ladder. Some employees may also be parents, which means talking to them about how they can help their children with home ownership will be very valuable.
Taking the opportunity during the mortgage clinic to talk through the latest products can also help to illustrate real life borrowing scenarios, something not easy to portray when advertising through traditional means and websites. This also gives a taste of your services and enhances your reputation in the area.
You can also use the mortgage clinic to help people get “mortgage ready” for when they do come to see you. This gives them a direct plan they can follow through, with meeting with you at the end of it! Face to face introductions are still very powerful and we have found advisers generating direct leads from the sessions.
How might you prepare?
Send a letter to the local business where you would like to host the mortgage clinic and explain why you would like to hold the event and how this could benefit both them and their employees. A free of charge session will always be appealing, as well as the opportunity to hear from an expert.
Create a flyer or poster to advertise your event. This can be placed in windows or on notice boards to let employees know when and where you will be and what you plan to talk about. Mention briefly how the free consultation could benefit them if they attend.
Don’t forget a post-event thank you letter to send to all those that took the time to attend the mortgage clinic. These follow ups are an important part of the process and can be the difference when looking at how much business was created off of the event. It is also another touchpoint for the potential client to help ensure you stay in mind when they, or someone they know, is looking for some mortgage or insurance advice.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.