ANALYSIS


Be proactive about contacting clients


ROGER MORRIS SALES DIRECTOR PRECISE MORTGAGES


difference – is you. If you haven’t focussed on this aspect as much as you should, I recommend that you enter spring doing so. Start off evaluating your


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attitude. Attitude is everything and is a question of choice. Make sure you are positive at all times and that your focus is always on what you can do and not what you can’t. Have you developed business


prevention routines in your day which put off income-generating activities and replace them with pointless stuff that doesn’t result in income? By business prevention


routines, I mean do you read every


he most important asset of your business – the part that drives it, inspires it and makes the


email news alert, magazine article or even collect the kids from school because it postpones making calls to clients? Over the past decade we as an industry have become order-takers and not proactive in contacting clients. Once upon a time we would contact clients and ensure we let them know what we offered and reviewed their circumstances. And the key thing to remember


is that if as part of your weekly routine you don’t spend time contacting your clients, someone else will . Start April with a positive


attitude – remember there are two-thirds less brokers now than four years ago, so there have never been as many opportunities. Think about all those orphan clients who need a broker.


good, those surviving today have long since diversified. Protection and conveyancing


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are said to be complementary areas to mortgages, but one sector often overlooked is legal services such as wills, trusts or power of attorney. At first glance brokers may think this is an area beyond their expertise, but the more you think about it, the more it makes sense. If you are happy helping people


take out the largest loan of their lives and comfortable suggesting they may want to consider protection should anything go wrong, then it is a natural progression to ensure they have their legal affairs in order.


www.mortgagestrategy.co.uk


Offer legal services to boost the bottom line


BOB HUNT CHIEF EXECUTIVE PARADIGM MORTGAGE SERVICES


hile advisers could afford to concentrate on their core business when times were


Previously wills were not


considered until people claimed their free bus pass, but they are now being completed by those getting married who want to know their affairs are in order. The benefits of offering a range


of complementary services take little explaining, and offering legal services has three advantages. First, you are strengthening the


services you offer. Second, you are boosting the chance of adding a regular income stream to your business.


And finally, you are generating access to executors, witnesses and trustees named in the will, which enhances referral options. Besides the fact that no client


you have arranged a mortgage for should die intestate, these points mean it’s worth considering.


Secured loans a good fit for raising capital


DAVE PINNINGTON BUSINESS DEVELOPMENT DIRECTOR V LOANS


lenders withdrawing from interest-only loans or reducing the LTV they will permit for interest-only. Of course, this is going to make


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remortgaging that much more punitive for many borrowers, particularly those who want to raise capital. The argument in favour of


secured loans as a natural option for borrowers who do not want to upset their mortgage arrangement is becoming more than just a fringe activity. Perhaps it is not such a surprise


that with rates on secured loans nudging under 7%, advisers should be thinking about the options secured loans provide when it


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very dark cloud has a silver lining, so I urge all brokers to take heart in the wake of a number of


comes to advising on the best way to raise capital. Not only should a secured loan be considered where a remortgage would be at a higher rate than the existing mortgage, but also when a remortgage would trigger a move from interest-only to repayment, resulting in unnecessary payment shock.


Secured loans have always been


a natural fit for clients who want to borrow for capital-raising purposes and not tie in their extra borrowing to the length of their mortgage term. Given the transparent charging


structure, maximum of two months’ interest for early redemption and the appealing rates, there is a strong case for secured loans taking more of a front row seat when borrowing options are being considered for clients.


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Importance of living within your means


STEVE PAYNE MANAGING DIRECTOR OF PROTECTION FRIENDS LIFE


ritain is a diverse little island and the cost of property in different areas of the country can


vary wildly. But the salary of an air traffic


controller, for example, is around £50,000 no matter where they live so it’s all relative. A blanket decision to offer the


cheapest mortgages to those earning £50,000 or more could shut a number of home owners out of the property market when they pose little risk to lenders. There is a significant difference


between living within our means and living comfortably within our means, and that difference is our income to outgoings ratio. For those who fall into the first


category life can start to feel like walking a tightrope – teetering on the edge and desperately trying


to maintain some balance. For those lucky enough to be in the second camp, life is less complicated and an interest-only mortgage is often more appealing for the freedom it offers. It is less to do with income though and more to do with outgoings. Brokers need to be certain that


they are offering the right advice to the right people, as there is nothing worse than when a home owner cannot cope with their repayments. The result of not living within our means can be catastrophic to individuals, families and the reputation of the industry. Responsible lending is a good


start. But most important is the need to treat clients as individuals, taking factors such as income, outgoings and geographical location into account before turning them down.


MORTGAGE STRATEGY April 9, 2012


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