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Using affordability tools to improve your lead conversion – Mortgage Broker Tools

by: Lewis Lenssen, managing director at Mortgage Broker Tools
  • 08/07/2019
  • 0
Using affordability tools to improve your lead conversion – Mortgage Broker Tools
Affordability is an increasingly key consideration when it comes to choosing the right lender for your clients, but have you thought about how it can help you further up the sales funnel?

 

 

 

The ability to quickly and easily obtain an accurate picture of how much a potential client could borrow could help you to generate, and convert, more leads. Here’s how.

Whatever method you use to generate leads, there is probably a significant proportion that don’t convert to completed business, which equates to wasted money and effort on your part. So, improving this conversion rate not only results in more business but also a more efficient way of working.

One way of improving conversion rates is by demonstrating to potential clients how much value you can add, as early as possible in the process. This can help to win over those people who are undecided about which broker to choose, whether to go direct to a lender or even whether it is worth them pursuing their chances of getting a mortgage.

For many borrowers, the biggest question they have when it comes to applying for a mortgage is how much they are able to borrow – it’s often a more important consideration than rate.

So, to help improve your conversion rates, give your leads an accurate idea of how much they might be able to borrow, not simply a five-times multiple. There is a wide range in what lenders are prepared to lend and by demonstrating this, you can educate potential clients and reinforce the idea that using a broker is essential in finding the right mortgage.

 

Working the data

 

Most data capture forms for mortgage lead generation will include fields for income and possibly even outgoings, and this information can help you to provide a good understanding of a prospect’s affordability.

Forget about using income multiples for this, it’s too rough an estimate, doesn’t properly account for lenders’ true affordability models and doesn’t demonstrate any added value to your potential client.

Instead, the smart approach would be to use an affordability platform, like MBT Affordability, to utilise the details submitted by your potential client and get accurate affordability results from a wide range of lenders. This will enable you to respond to the enquiry with more accurate solutions, based on the information provided to you, on how much and what type of mortgages would be available to them.

By following up on leads in this way, you can demonstrate your ability to research mortgages based on their individual circumstances and this will help you to convert more business.

Affordability is such a key issue that affordability tools are now being used across the industry, including by lenders to help inform and target their product development. So, think about how you can use tools like these to give your business an advantage, not just in researching solutions for your clients, but also generating new leads and improving your conversions.

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