Client expectations have always been difficult to manage; however, for many, these expectations have become even more challenging in a higher interest rate environment where they are being placed under greater inflationary pressure.
These conditions have resulted in something of a lull in the housing market, with many customers choosing to put their plans to buy a house, or move to a new one, on hold while they wait for the dust to settle in the hope that the cost of borrowing becomes more affordable.
For brokers, navigating this new operating environment can prove both frustrating and concerning, particularly after such a period of high growth and even higher demand experienced across the housing and mortgage markets.
However, in times of change lies opportunity and now, more than ever, brokers have the opportunity to proactively look at different ways in which they can add value – while simultaneously growing their business – by tapping into the potential offered through their existing client bank.
Many brokers will have built up longstanding relationships with their clients. This means they have a wealth of information about their personal circumstances at their fingertips. Information which could prove useful for future business opportunities, particularly if these circumstances have changed or are about to change.
Perhaps a particular client now has older children who are about to leave home either to enter higher education or move to a different city for work? Given the rising cost of rent and shortage of rental properties, it may be worth having a conversation with them about the ways in which they could help their children buy a property using existing equity in their home.
For example, products such as a Buy for University or Joint Borrower Sole Proprietor mortgage can help younger people get onto the property ladder with the help of their parents by placing a collateral charge on an existing property or by using savings or the equity built up in their own home as a deposit.
Maybe you have clients approaching retirement who are considering downsizing to a smaller property to be closer to family or buying a holiday home to enjoy once they finish work. Products such as a holiday buy-to-let mortgage or those specifically aimed at borrowing into retirement could help them to get the ball rolling on the retirement planning process.
Tapping into an existing client bank could also help brokers identify any niche or specialist areas of the market that are specifically common to their clients. Perhaps you live near a hospital and have a lot of clients that are doctors or medical consultants? Or maybe you live close to an airport and have a client bank made up of lots of pilots, stewards and flying staff?
Identifying patterns in an existing client book can help brokers carve out a niche for their business and help to associate themselves with a particular area of the market which can hold them in good stead when the market is less buoyant and help to lay the foundations for being a specialist in that field.
So, maybe now is the time to dig a little deeper into existing client banks to identify some new opportunities and solutions which could not only help brokers to get the right results for their clients; but also help maximise business opportunities which may already be under their nose.
Ashley Pearson is national BDM at the Loughborough for Intermediaries
