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Third of brokers expect to diversify business in next six months – Skipton BS

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  • 30/07/2020
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Third of brokers expect to diversify business in next six months – Skipton BS
A third of brokers believe they will see a change to the type of business they place over the next three to six months, with a heightened focus on remortgages and product switches.

 

However, according to a survey of 311 brokers conducted by Skipton Building Society over May and June, this remains dependent on the future economic situation, house prices, consumer confidence and customer priorities. 

 

Covid concerns 

Pent up demand and the stamp duty holiday provided some confidence to brokers as before this, seven out of 10 were worried about the impact Covid-19 would have on business after lockdown. 

They predicted there would be an initial spike before they saw a decline in business volumes but since, Skipton said a number of brokers reported high lending volumes and sustained business had counteracted doubts.

For the third of brokers who believed they would not be affected by the pandemic, they cited having a good client bank and a diversified business particularly with increased protection sales. 

 

Lender support 

Skipton asked brokers about their attitudes towards lenders and the help received.

Brokers said they would place more business with providers who lend at higher loan to value (LTV) tiers and they preferred lenders who made the process quick and easy. 

They also said they would increase their use of lenders with flexible criteria and underwriting to consider borrower circumstances and will continue to be loyal to providers who have supported them through the pandemic. 

Paul Fenn, head of business development at Skipton Building Society, said: “There is much uncertainty about the future economic situation and housing market and how this will affect their businesses.   

“Communication is key to supporting brokers right now; updates through all channels need to be relevant, concise, show empathy and acknowledge the uncertainty.” 

He added: “Relationships with business development managers (BDMs) remain important and there is more emphasis on what additional support BDM’s can provide, such as regular virtual check in’s, virtual hotdesking and webinars to help broker understanding of the many criteria and policy changes due to Covid-19.”

 

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