Over the two-day event, broker delegates were separated into smaller groups to engage with lenders and providers on the events impacting all sides of the market.
One discussion focused on the future of the mortgage market, where brokers brought up the topic of artificial intelligence (AI) and worries about the Financial Conduct Authority (FCA) removing the advice trigger.
AI already looks and feels like advice
One delegate raised concerns that AI could potentially threaten the role of an adviser.
Another said searching on a price comparison site still encouraged customers to do their own research on the options presented, while AI “feels very much like advice”.
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They said it gave users “definitive answers” and the FCA’s changes made it easier to “cut out” the advice process.
Another person said AI was simply a more advanced way of researching, and said this meant intermediaries “have to be in the research process”.
They said by the time a client came to an adviser, “the research has already been done”, whether using AI or Google search. They added that intermediaries should be able to provide this same information in a safe manner.
“There are a lot of things we need to do to reposition [ourselves] and promote the safety of using AI and how that data is used is actually a big selling point for us,” they said.
Another noted that the detail that consumers put into AI was “frightening”, which could bring about safety concerns.
One delegate said brokers used to compete with other brokers, but with the rise in AI and removal of the advice trigger, advisers were now competing with direct channels.
The potential rise of execution-only business was also discussed, with some suggesting that this may be an avenue lenders would explore to offer customers broader choice.
Another mortgage professional said an adviser’s market share might drop, but the monetary value of business could rise due to an increase in activity and wider mortgage access.
Data in protection planning
Another discussion centred on enhancing the protection advice process with technology, building trust and recognising vulnerabilities.
It was said that everyone has the potential to be vulnerable, as vulnerabilities could be caused by health, a lack of understanding or life events. They said even the process of giving someone a mortgage potentially made them vulnerable as they were now overindebted.
It was suggested that advisers ask clients, “what do you want to get out of this conversation?”, as it repositioned their needs and could make their priorities clearer.
Asking clients detailed questions can help get to the bottom of their needs too, as this will give advisers more insight into their situation and goes beyond the transactional approach.
They said this was about more than building long-term relationships with clients, but also revenue.
One said the biggest challenge advisers had was time, and often, they saw clients too late in the process when they were set on the property they wanted to buy, were in a rush and affordability had already been stretched.
FTBs still have affordability challenges despite a multitude of options
A lender representative said they and other providers had done well to launch different mortgages to address the barriers first-time buyers came up against, but despite this, affordability challenges had not been addressed.
“We’re coming up with great propositions, but this isn’t the problem. The problem is education,” they said, adding that if all the products launched by lenders were put together, “it still doesn’t solve the problem of affordability”.
They said many young people felt they would never get onto the housing ladder.
Contending with ‘finfluencers’
One delegate said first-time buyers had “no education” about the mortgage process, and another said it should be taught in schools.
Another said clients took their advice from TikTok, which ended up ruining their credit file and they were now unable to get a mortgage.
One person said TikTok was a “bible” for some, while another suggested that to lead consumers to proper advice, lenders and advisers needed to get on the platform themselves.
However, it was said that lenders were held back by compliance.
