When was Linear set up?
Linear was set up eight years ago to offer mortgage advice primarily through estate agents. We did things differently by recruiting, training and taking responsibility for all of their advisers; the more conventional model was to leave them to be managed by the estate agent.
When did Linear join LSL?
LSL Property Services Group took a majority shareholding in Linear four years ago
How has Linear changed since then?
Two years ago, ahead of most other companies, I retrained all of Linear’s mortgage advisers transformed the business, from that of a specialist mortgage brokerage to become a network offering full financial advice.
Linear Mortgage Network started trading as Linear Financial Solutions and differentiated itself from other networks by providing a framework of support and skills training for advisers while also providing new business referrals, as well as appointments made via its call centre. Linear has spent the last two years perfecting its financial advisory model. The key to its success has been through on-going sales training for all of its advisers.
What’s the next step?
Linear is about to offer additional financial services advice to the back book of all LSL financial services clients from Reeds Rains and Your Move who haven’t yet been contacted for specialist financial advice.
What are your tactics for approaching these clients – simple letter or going in with an angle?
Linear carried out a three month pilot asking clients what they wanted and expected from a good financial adviser. Some 90% of people questioned said that they would be happy to receive a follow up call in six months time to talk about general financial issues. We used this information not only for Linear clients but to apply to the LSL group database. We make an introductory phone call as part of Treating Customers Fairly, asking them, as a valued client, if they want a financial review. Of the people that we get hold of, 60% are happy to have a financial review and of these more than 50% then go on to take out a further product. We discuss pensions, investments, inheritance tax planning and make sure that, where appropriate, policies are written in trust. It is frightening how many people are being sold a single life assurance policy which is not in trust.
If clients are on SVR, how are you planning to start the mortgage discussion?
We don’t discuss their mortgage with them as that is always referred back to the mortgage broker within the Group who wrote the original business. The discussion always starts by asking if, as a valued client, they would like a financial review.
Is Linear planning to charge fees to new customers or are they already doing so with other clients?
Linear charges fees for new clients on mortgages but has no plans to charge a fee to existing clients for wider financial advice.
