Cover


may be able to assist,” explains Stockton. But that doesn’t rule out the smaller


firms from being proactive. “We always keep in touch with our


clients and we advise them about four months before they come off their current deal,” says Fitzgerald. “It’s also very important to tell clients


that they can in many cases repay extra off the mortgage within the redemption penalty and this will help them the next time they want to remortgage or purchase.”


Robert Sinclair, director of AMI, says


the lack of movement and understanding is an opportunity for intermediaries. “Such is the dearth in appropriate


products that more people need better advice and a wider choice and this represents a vast pool of potential business for brokers,” he says. “Brokers need to educate the


consumer and be more proactive if they are to turn this latent demand into new business. The mortgage market isn’t suddenly going to spring back to


pre-downturn levels so it’s up to brokers to make the most of the opportunities out there.” Ian Wilson, head of sales at Halifax


Intermediaries, says the desire is still there but brokers can help first-time buyers understand that homeownership is a realisable dream and provide the roadmap of how to achieve it. “Our research shows that over three


quarters of non-owners want to buy a home, but 40% think it’s impossible,” he says.


Some simple steps to bring in business


by Ben Thompson, managing director, Legal & General Mortgage Club


In our recent research the base was sufficiently large and credible for us to draw the clear conclusion that whilst many people worried that they might not be able to buy or refinance to their preferred requirements, a decent percentage were worried for no real reason.


In other words they held a perception that they might not be able to do something that in reality they probably could do.


I was recently struck by a conversation with a successful local estate agent. I asked him how he was coping with the lack of mortgage finance for first-time buyers, assuming his market was now older movers and lettings.


He agreed in part however was very quick to highlight that for three years they had conditioned their sales staff and customers alike to expect to put at least 15% down as a deposit or forget it. He said that meant nowadays those who have been in gainful employment and have been fortunate enough to be able to save a big deposit simply come in well prepared and ready to buy. That


34 mortgage introducer AUGUST 2011


was a good answer but doesn’t address the problems facing those with smaller deposits.


Brokers working within or on behalf of an estate agent can help present to residential negotiators and lettings teams precisely what the lending situation and availability is today; showing things have moved on and for the lucky few, even 95% LTV is possible.


Make clear the cost comparison between renting and buying, for those who perhaps are renting and feel they don’t want to meet landlord demands for higher rental payments, and who actually want to buy their first home. Demand to see all applicants who have registered in the last 12 months who are known to fall short on deposit, and arrange a call with them to educate them about how well worth it is to save hard if they can, and agree a target amount and date by which time they will have saved what they need to achieve their dreams.


I would then timetable a call accordingly. Part of this is making clear what they would pay on their mortgage hypothetically with a 5% deposit versus say 20%. All advisers can write to all existing customers and any other owned and relevant database, with a mailing that makes clear what might be available in terms of mortgages.


Two years ago there was almost no product available for people with a credit blemish, today there is more choice and even the pricey mortgages are cheap by historical comparison. Many prospective buyers and movers are sitting on their hands at the moment and need someone to show and encourage them into the market as and when appropriate. Taking these steps as a minimum updates your clients as to what is available and better still will result in some new business and referrals. The lack of confidence is of course harder to overcome. When hard times strike, we tend to look inwards and seek to protect our families and our jobs. I am clear that you can’t make people confident enough to make a new commitment to buy or move but you can talk to them at length about what they are feeling and are concerned about. This sort of conversation usually ends up with clients buying protection for his or her family.


In many ways this is a more productive discussion because the fact finding process extends to cover some very personal feelings not solely mortgage related. Through this process the client becomes more confident in you as an adviser and would be more likely to work with you in the future as and when circumstances had improved to enable them to buy or move.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60