The best brokers have their client’s back from day one, says Amanda Bryden, head of Halifax Intermediaries
Lloyd’s Banking Group supported 56,000 first-time buyers last year and those buying their first home accounted for about half of Halifax’s intermediary business.
We’re proud of those figures because first-time buyers sit at the core of our mortgage business and are integral to a functioning housing market.
They need support and help on their journey to homeownership, and that doesn’t just start when they make an offer on a property.
Intermediary benefits
The best intermediaries nurture their clients before they even start house hunting, ensuring they’re mortgage-ready and in the best possible position to get a ‘yes’ from a lender.
You also look at the bigger picture of their finances and give them a realistic borrowing and buying budget, which is good for them and good for your conversion rates. Plus, looking at your clients’ wider finances is a great cross-selling and retention tool to keep hold of them for the long term, which will grow your business.
Your hard work helps us too, because we get well-packaged business from our broker partners that goes through smoothly and quickly.
Rules of engagement
Engaging first-time buyers is the first step to supporting and nurturing them, but where do you start?
Some new clients will come to you through word-of-mouth recommendations, others will be through paid leads, but you may also choose to market your services, and this is increasingly done online.
Leverage social media to connect with aspiring first-time buyers, by sharing useful content and information with them. This doesn’t need to be expensive, although it will require a time commitment.
Start by posting interesting news about mortgages and housing, responding to their questions or publishing your own content, from top tips or market insights to blogs on the basics of getting a mortgage.
As you become more accustomed to social media, you could extend this to filming video content or hosting webinar sessions and promoting them through your social channels. Positioning yourself as an expert in the first-time buyer market helps to build your brand by establishing trust and credibility, while advertising your services.
Share your successes by asking for testimonials from clients, or even writing a more in-depth case study about their experience. These can be published on your website or your social media channels.
You could go one step further, by offering to write a blog for the local newspaper for example. If you have the budget, you could employ a PR expert to support you with media relations and building your brand profile.
Get clients mortgage-ready
Educate prospective clients about the mortgage process and what they need to do, from gathering the required documentation to getting their finances in order, cancelling unused subscriptions and getting out of the red if necessary.
They may want to get a copy of their credit record to see if there are any potential issues, so they can work on them early to avoid any nasty surprises down the line.
And if they aren’t already saving for a deposit in a Lifetime ISA, it’s worth introducing them to the benefits and how they work – in particular, the government’s 25% bonus.
Make sure they understand all the costs of buying, from the mortgage fee to legal costs, home survey fees to the costs of protection. These expenses should be worked into their initial borrowing budget and understood from the start.
Communicate clearly
Clear communication is key at all stages of the mortgage journey, so keep things simple.
Explain any industry jargon and ask your client if they don’t understand anything you are saying. This starts with your written communications so write in plain English where possible. Clear communication is a key part of supporting clients with vulnerabilities as part of your Consumer Duty obligations.
Use whichever communication channel your clients prefer, whether that’s face-to-face, over the phone or online. Adopting a multichannel approach allows your first-time buyer client to decide how, when and where they make contact.
Beyond the mortgage
It also makes sense to look at the bigger picture when it comes to your client’s finances. The point of sale of a mortgage is a good time to bring other potential products into the conversation, from insurance to will planning.
You may be able to advise in some areas yourself – such as protection – but you could also build referral relationships with trusted experts in conveyancing, or investment advisers who can support your client with their wider financial planning.
Client for life
Your first-time buyer-client relationships don’t stop at completion.
Regular communication means clients know you’re there for them the next time they need a mortgage or other financial product. Do this well and you can gain a client for life. It also makes them more likely to recommend you to a friend, family member or colleague.
As intermediaries, you do more than just help first-time buyers to find a mortgage. You play a key role in their homebuying journey by preparing them for their first mortgage application before they start house hunting.
Hopefully, you can foster a trusted relationship that continues beyond completion and throughout their mortgage term.
For the use of mortgage intermediaries and other professionals only.
The information contained in this article is the property of Lloyds Banking Group plc and may not be reused or publicised without our prior permission. The information provided is intended to be for information only and is not intended to be relied upon. This information is correct as of May 2024 and is relevant to Halifax products and services only. If you do not have professional experience, you should not rely on the information contained in this communication.
If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise private clients, you must ensure it conforms to the Financial Conduct Authority’s advising and selling rules. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.
