Q: The signs are that my mortgage business is picking up, but how can I make sure I maximise on the turn in the housing market?
A: It does appear that we are seeing some signs of health returning to the mortgage market, albeit there are some significant regional differences – I heard one commentator mention this week that in the housing market ‘the South East is always the start of the improvement but is also the start of the drop’.
Figures from Halifax show that the number of first time buyers taking mortgages increased by 20% in the first six months of 2013 compared to 2012. This is the biggest increase in first-time buyer numbers since the first half of 2007. Likewise, recent figures from the Council of Mortgage Lenders also show mortgage lending on the increase.
Whilst your mortgage business may be picking up, I would urge you not to forget selling general insurance (GI). It is important to remember that even though GI may fall back in terms of your priorities, you have built the foundations of a holistic offering and to turn your back on GI now would be a mistake.
GI has after all helped many advisers through what has been a difficult few years. It gave them a chance to keep in touch with their mortgaged clients, retain these relationships, build new ones and demonstrate the extra value they can deliver, as well as providing a valuable income stream during the tough times.
Look at the rise in the mortgage market as a chance to yet further maximise your GI sales and wider cross selling opportunities. If you are finding you are swamped and GI seems like hard work, then look at the ‘introduction’ services offered by your GI provider. Introducing GI can give you some breathing space and negates the need for excess time spent on compliance etc, whilst ensuring you can carry on earning and offering a wide range of services to your clients.
We cannot be sure we are out of the woods yet so it is important not to let your valuable GI income stream fall away. Keep on cross selling and make sure your business makes the most of the renewed signs of life in the mortgage market as well as cementing your relationships with clients for when times are hard.
