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Brokers are gearing up for new business

by: Graham Felstead
  • 07/07/2011
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Brokers are gearing up for new business
The announcement by the CML that gross mortgage lending rose 12% in May compared to April and was up 1% on the same period of 2010 was encouraging.

Obviously, whilst welcomed, this news does not signal a new dawn for the industry, although it does reflect the broker optimism recorded in a recent survey we conducted in partnership with Mortgage Solutions.

In the research we conducted with mortgage intermediaries in April 2011, two-thirds (67%) thought that they would write more mortgage business this year compared to last. Fewer than one in ten (8%) believed that they would do significantly less business.

Our research revealed that the main areas that brokers are going to focus their marketing efforts on are on re-engaging existing clients and on the remortgage sector. There was also evidence of a push to cross sell other financial products.

More than half (56%) said their priority was to re-engage their existing clients for remortgages, with just under half (44%) saying that they would focus on attracting new clients for remortgage business.

A third (34%) said they were going to target home movers, with the same number looking to cross sell other financial products to existing clients.

Unsurprisingly, referrals were cited as the main source of new client enquiries.

Three-quarters (75%) stated that existing client referrals are the best source of new business, with nearly half (44%) saying that referrals from other professionals generate good business leads.

And the growing influence of the web was evident, as brokers’ third most popular source of new client enquiries is from online natural search results, with 13% identifying this channel as one from which they are gaining business.

In addition, one in ten (9%) said they have benefited from gaining editorial coverage in their local or regional newspapers.

The findings of our survey suggests that many brokers are actively gearing up their new business plans to prepare for a predicted increase in consumer appetite for remortgaging.

And they are using their existing client contacts to, not only try to sell more to, but also to gain referrals.

The bottom line is that if brokers continue to nurture relationships with their clients through effective communications, they will have a better chance of being ‘top of mind’ when their clients are back in the market looking for a mortgage or other financial products.

Graham Felstead is head of intermediary channel at NatWest Intermediary Solutions

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