A spike today, a gap tomorrow – what this month really means for advisers – Singh

We saw that play out very clearly in our own conveyancing data, with instruction levels rising significantly in a very short space of time, and while the headline figure of a 26% week-on-week increase tells part of the story, the real insight sits behind what actually caused it and what it is likely to mean over the coming weeks.

This was not a natural uplift in demand, nor was it driven by improved market confidence, but instead a classic case of business being brought forward, with advisers contacting existing clients and accelerating decisions that may otherwise have happened later in the month or even next month. That distinction is important, because it changes how firms should be thinking about what comes next.

The risk of a quieter period ahead

When activity is pulled forward at this kind of pace, there is usually a consequence, and that is a potential dip in the weeks that follow – not because the market has worsened further, but because a chunk of that pipeline has already been processed earlier than expected.

We have seen this before in different forms, whether it is ahead of stamp duty changes or rate shifts – we saw it around both the pandemic and the Truss mini Budget – and the pattern tends to be similar, with a surge in activity followed by a period of relative quiet as the pipeline resets.

Sponsored

How brokers can shape the future of shared ownership

Sponsored by Halifax Intermediaries

If that is what happens here, then advisers and firms need to be prepared for it, not just operationally but commercially as well, because relying on a constant flow of new business in a volatile market is rarely a sustainable position.

Making the most of the clients in front of you

This is where the focus needs to shift, because if the volume of new opportunities softens in the short term, then the value of each existing client interaction becomes even more important.

The early signs from last week suggest that advisers understood this, particularly when it came to conveyancing, as the spike in mortgage applications translated directly into a rise in Conveybuddy conveyancing instructions, showing brokers were not simply securing the rate but were also progressing the wider transaction at the same time.

That is encouraging, but it should not stop there.

If a client is moving forward with a mortgage application, especially in a period where decisions are being accelerated, then that should be the trigger to review every aspect of their needs, including protection, insurance, and any other advice areas that form part of a proper, rounded recommendation. We do not want to risk missing the broader opportunity, particularly if the pipeline tightens in the weeks that follow.

A more joined-up approach to advice

What early March has highlighted is how interconnected the process is, because when lenders move, advisers clearly have to move, and when advisers move, everything else in the chain follows, including conveyancing, with the firms benefitting most from this being those that treat each case as a full advice journey rather than a single product sale.

That means having the right conversations at the right time, ensuring clients understand not just their mortgage options but also the implications for their wider financial position, and making sure no part of the process is left as an afterthought.

In practical terms, that might mean bringing protection discussions forward or ensuring conveyancing is instructed at the same time as the mortgage rather than later in the process, because in a fast-moving market, delays can quickly become missed opportunities.

Preparing for what comes next

The reality is markets like this rarely move in a straight line, and while earlier this month was defined by urgency and volume, the coming weeks may look very different, with activity levelling off as the impact of those product withdrawals feeds through.

That is not something to be concerned about, but it is something to plan for, because the firms that perform consistently well are those that adapt quickly to changing conditions and focus on maximising the value of every client interaction.

If anything, early March has provided a timely reminder that demand can appear and disappear quickly, and the best way to manage that is not to rely on the next spike, but to ensure every case being worked on today is delivering the full range of advice and service that the client both wants and needs.