The record breaking month
30 June 2021
30 June 2021
What a year we’ve had in the mortgage industry. The first lockdown created huge uncertainty, and with no new clients coming through the door, most brokers concentrated on re-engaging with their existing clients. Then the Stamp Duty holiday hit the industry. Record levels of business month by month, a feeding frenzy in the property markets, rapidly increasing prices and brokers and lenders struggling to cope with demand. As the SDLT initiative comes to an end, has it really been the benefit it seemed at the time?
Many brokers have struggled to cope with demand, long hours, less protection sales, not enough sales capacity to review and service existing clients, falling service standards. Brokers have shared all of these sentiments with me. Many are now saying thank god it’s over now we can get back to doing a proper job, not order taking and transactional business.
I believe now is the time to look at business models and focus attention on delivering great advice.
Two major opportunities should be energizing brokers minds;
- The huge volume of fixed rate deals maturing and protection advice for existing clients.
- The estimate is that 700k+ fixed 2 and 5 year deals mature in 2021, anecdotally some lenders may start approaching clients earlier on maturing deals. This seems like an ideal opportunity to drive great business volumes, retain clients and use the opportunity to review clients protection needs (and investments if you have that in your armoury).
Review your business model, if you couldn’t cope with the volumes in the last year, have you made best use of technology to manage processes and engage with clients? Does your technology do the heavy lifting and through a portal allow your clients to engage with you every day, not just an annual email? If not maybe now is the time to re-evaluate whether your current system supports your business ambitions. Perhaps looking at broadening your proposition our recruiting trainees to become the advisers of the future?
Finally, if your business has simply tracked the market and not exceeded it, will your business track the market downwards as well? If you are ahead of the competition and adding real value to customers your growth should exceed market trends.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.