Taking a look back on 2017, mortgage brokers essex, and throughout the UK, had a lot to be thankful for. Despite a weaker economy, election and the uncertainty surrounding Brexit, last year was still a strong year for the mortgage market.
The industry remained resilient in a low interest rate environment, and the Autumn Budget delivered positive news about the promise of 300,000 new homes a year, £10bn in funding for the Help to Buy scheme and the exemption of stamp duty for first-time buyers.
Affordability will remain a key issue in 2018, as recent studies showed that the house price to salary ratio in London hit a record high at 14.5 times the average wage.
Brokers can help here, and they’re more important than ever.
Clear about the value they bring
A recent campaign by FT Adviser showed worrying misunderstandings about a broker’s role. Fewer than half knew that a broker works primarily for the borrower, and more than half of consumers thought brokers offered them the access to the same products as when going directly to a bank or building society.
To help this, mortgage brokers need to be loud and clear about the value they bring in, including the access they offer to thousands more mortgage products for consumers.
The knowledge to make the most of opportunities
Where buyers are struggling to raise a decent size deposit, advisers need to be in a position to present them with all the options. Could parents help out with funds? If they can’t afford to buy locally, could buy-to-let somewhere else offer an alternative way to secure a foot on the property ladder? Or are they aware of schemes such as Shared Ownership that could be an alternative route?
Mortgage brokers need to have a broad view of the market, be aware of all options available to buyers and be able to help tackle any misconceptions clients may have about housing schemes.
Make the most of technology
Mortgage brokers need to make the most of technology. It doesn’t mean switching over completely, but instead being able to use technology available to enhance their efficiency and service.
Whether it’s case management or digitising client communications to help speed up mortgage applications, mortgage brokers must understand the opportunity technology provides.