If you’re anything like me then, as we approach Christmas, you can’t be certain how your productivity levels will hold up. Will the Christmas parties get in the way of your work? Will you simply accept that December might not be your most productive month of the year and wind down accordingly? The temptation to put your feet up and reflect a little on what has been a tumultuous year is likely to be there, however in terms of setting yourself up for 2017 it’s probably not the wisest of decisions.
In the mortgage broking world of course much will depend on the motivation of your clients and, judging by the adviser message boards, there’s certainly a mixed picture in terms of activity. I’ve read of brokers having significant volumes of work to get through, whilst at the same time many are suggesting there is little to keep them busy.
Given the fact that a number of sectors stand at a pivotal point, perhaps the best course of action in these last couple of working weeks before Christmas, is to concentrate on them. Indeed, when it comes to both remortgaging and the buy-to-let markets I might suggest that clients could be very keen to act now, rather than wait until the new year is with this.
In terms of remortgaging, highly competitive rates and products abound as many lenders seek to hit their end of year targets, coupled with a purchase market which appears rather limp at present. For those clients who are able to remortgage there now appears to be a great opportunity, especially with the expectation that many lenders will be pulling back on their most competitive rates post-Christmas, and we could also see movement in Bank Base Rate next year based on the potential for rising inflation. And don’t get me started on what the Brexit negotiations might bring.
For buy-to-let, we appear to be at something of a cliff-edge in terms of the underwriting changes PRA-authorised lenders will need to begin introducing from the 1st January. Increased rental stress testing kicks in then, while other changes must be in place from September, however I suspect lenders will be pre-empting this and making their move far earlier. All this means that 2017 could see a further shift in the buy-to-let lending landscape with maximum loan levels being significantly reduced and tighter criteria hoops for landlords to jump through. At the same time I suspect the move towards limited company buy-to-let activity will continue to grow.
So, in those two sectors we can see opportunities for brokers to support their clients and to secure them a better deal than they might be able to do in just a few weeks time. Of course, at the same time, this level of re-engagement with the client base, particularly existing borrowers, allows advisers to cover off, and update, a range of other needs whether they be insurance, protection or, of course, conveyancing.
Indeed, upping the level of existing client communication can certainly pay dividends not just throughout this month – if you’re able to move quickly – but also for those first few months of a new year, which are always crucial and come with the added pressure of wanting to hit the ground running. Working the database throughout the ‘quieter’ weeks is likely to bring a much greater reward next year, especially if you’re also 100% committed to looking at all the client’s needs, not just the mortgage. In fact, in this day and age it seems rather ludicrous to even be writing this as one would assume this is done as a matter of course. However, having been around this business for a very long time, I’m aware that it’s not always the case.
So, while there are clearly plenty of distractions throughout this month and one can be blown off course by the Christmas spirit(s), there is a great deal to be gained from a focused approach to mining the database, particularly when it comes to potential remortgage and buy-to-let clients. Time could be running out, in terms of the better deals, for these borrowers and an approach now could result in a very happy client, and make good business sense for you.
That said, let’s all take time to enjoy the festive break after what has been an ‘interesting’ year for all of us. So, let me wish you a very Merry Christmas and a Happy New Year.
Harpal Singh is managing director of BrokerConveyancing.co.uk.