This week’s comment is in response to: Less than a quarter of brokers say 2023 was ‘good’ for business
Andy Wilson said: “If the mortgage world seemed bad in 2023, consider the equity release world. A combination of high lifetime mortgage interest rates and significantly reduced loan to values (LTV) following the disastrous mini Budget of September 2022 meant that for many advisers, business immediately fell off a cliff and never really recovered.
“Many have seen their business levels reduced by more than half compared to 2022. To borrow a phrase from the investment and pensions world, for advisers ‘the value of your investment can fall as well as plummet’ seems appropriate.”
He continued: “However, as we end a year, most equity release advisers would prefer to forget about, there has been a glimmer of light at the end of the tunnel which, for once, may not be a train coming the other way.
“Gilt rates have fallen in recent weeks, meaning some lifetime mortgage interest rates have also reduced, and some LTVs have increased. This is enough to at least re-start the conversations with those clients who may have been holding off until the market improved.”
Wilson added: “In a confident move forward, I have invested in a number of horseshoes and rabbits’ feet, and I am actively involved in scouring my garden for four-leafed clovers in the hope that this trend will continue into 2024.”
First-time buyers want to be educated and understand the process
This week’s second comment came from the article: ‘I get 99 per cent of my leads from Instagram’ – mortgage adviser
disqus_8fOMMy2pIO said: “Younger people buy everything online. They don’t ask their friends or family. They see someone share information, buy into it and go to them,” she said.
“Really? Says someone with 30+ years in the business who has just done two FTB loans from referrals related to existing clients. They want to be educated and understand the process, have faith and trust in that person acting on their behalf. The problem with buying online is you cannot touch and handle the goods.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
