BestAdvice talks to Brightstar Financial’s head of marketing, Michelle Westley, about opportunities for brokers in 2023 and the specialist distributor’s upcoming Specialist Lending Expo.
BestAdvice (BA): 2023 looks like being a tough year, but are there still opportunities for brokers?
Michelle Westley (MW): Absolutely, a challenging economic environment provides brokers with a great opportunity to really prove their value and this year is no exception. We have been talking for years about the growing importance of the specialist sector as customer circumstances have diversified and become more complex. Now, following Covid and the cost-of-living crisis, brokers really can’t afford to ignore it. There are so many clients out their whose credit record or income structure means they are excluded from the mainstream, and they don’t know where to turn. At the same time, a slowing property market creates opportunities for investors and specialist finance can help them make the most of those opportunities.
If brokers take a proactive approach to contacting their existing clients and reaching out to new ones, they will find a growing number of customers who need their help, even while property transactions may be falling.
BA: How can brokers make the most of these opportunities?
MW: Start a dialogue with new and existing clients about their financial situation and objectives, and how you may be able to help. Even if they don’t have immediate plans to move home or remortgage, they may benefit from consolidating their debts, for example, with a second charge mortgage, and this could help put their finances on a surer footing for the future.
Then think about how you want to engage with the specialist market. You could choose to work with lenders directly, or you may prefer to partner with a specialist distributor to access the knowledge and experience of experts who work are immersed in the market, have in-depth understanding of criteria and know exactly how to present a case.
Some specialist distributors offer brokers a choice on how they would prefer to work with them. For example, if you want to keep ownership of the advice your client receives, you can choose to harness the knowledge of a specialist distributor to research suitable solutions and manage the process with the lender. Alternatively, if you would rather focus on other areas of your business, you could choose to refer a case to a specialist distributor to provide the advice in return for a share of the proc fee.
BA: What role do specialist distributors play in the market?
MW: Specialist distributors support every broker in providing the right solution for their clients. For firms that take a more hands-on approach to specialist lending, they can provide the expertise to upskill and diversify and for firms whose core business model lies in other areas, specialist distributors can provide their clients with access to products they might not otherwise consider. This will be particularly important given the new Consumer Duty regulations which will put more emphasis on brokers exploring all of the available product options.
Specialist distributors give brokers access the knowledge and experience of experts who work are immersed in the market and have strong relationships with lenders. This means they have the access and ability to talk through the merits of a case and work in partnership to look for a solution, which could even mean structuring a bespoke loan for the client.
Many specialist distributors also benefit from enhanced levels of service and exclusive products.
BA: What can brokers expect from Brightstar’s upcoming Specialist Lending Expo?
MW: The Specialist Lending Expo will take place online on Wednesday 25th January. It will be a ‘no sales zone’ and will feature a full day’s worth of free events to help brokers to make the most of new opportunities and diversify their business. It will also include virtual exhibition stands, where brokers can live chat to lenders, as well as a networking room, plus play-to-win games.
One of the first events to be confirmed is a live panel debate on The State of the Specialist Lending Nation. Taking place at 11am, the debate will be chaired by Rob Jupp and Michelle Westley from Brightstar, and feature Adrian Moloney from OSB Group, Joshua Elash from MT Finance, Steve Seal from Bluestone and Marie Grundy from West One Loans.
Throughout the day, there will also be keynote presentations from Allica Bank, TML, West One Loans, Hampshire Trust Bank, OSB Group, Bluestone, United Trust Bank, Landbay, Glenhawk and Brightstar.
Details about the full programme of The Specialist Lending Expo and how to register are available at https://specialistlendingexpo.online-event.co/registration/brightstar-3