It is a good time to be a mortgage broker. With reports that brokers’ share of the market now exceeds 70% almost the only worry for our brokers seems to be how make time for the influx of borrower interest, and how to recruit enough other staff to help them expand. Expanding their businesses continues to be a challenge for many broker firms that want to take on more people, as we find it a never-ending challenge to bring new people into the market.
It really is a case of making hay while the sun shines, but it is wise to remember that things won’t always stay this good. This is not to put a downer on the positivity that surrounds us but rather, to use another weather related analogy, it is a good idea to fix the roof while the sun shines. What I mean is that this is the perfect time to make sure that the business is being run prudently, with an eye on the future.
Mortgages are very transactional as we know, but there are measures that every broker can put in place to protect their business for the long term. Lenders are not going to keep letting brokers have it all their own way and sooner or later they will start fighting back, probably using developments in digital technology to enable borrowers to go direct, which will diminish brokers’ share of the market again.
The one way to build long-term value into an advisory business is by building in long-term income – and that means protection. Selling protection now does not only protect your clients but also protects your business by providing you with a longer-term income.
If it becomes normal to talk about protection as part of the mortgage process now, when everything is on the up, both the client and the business will reap the rewards in the future in the event that things do not go as well as they are today.
