How can advisers combat greater levels of direct business?
The mortgage market is a fast moving sector. We want to be aware of everything that is shifting so that we can find opportunity when it presents itself. One thing we’ve seen recently is a notable increase in product transfer (PT) business. one such product is the five-year fixed rate which can possibly mean that many clients don’t come back to the adviser for a mortgage review. This means some advisers are going to see less profits. We must not discount that the offspring of baby boomers might be where we get our business from.
- Approximately three-quarters of buyers every year are accessing their mortgage finance through the advisory profession.
- There is a focus on later life lending and a struggle for control over the first-time buyer market.
- Quality advice and services delivered at the initial stage of a first-timer’s engagement with the profession can turn into a regular client for the rest of their life.
“Talk to most people who bought their home over the past 50 years or so, and they are likely to have done it in a similar way – with a small deposit and a high LTV mortgage.”