Two experts also talk about key influences for 2024
As the financial landscape evolves, advisers are poised to play a pivotal role in helping borrowers make informed decisions. The entry of more lenders into the market underscores the increasing reliance on advisers.
According to Sam Burgess, head of lending at First Mortgage Trust, borrowers lack the time and energy to navigate the plethora of products and offerings available.
“There’s no secret sauce, in my view,” Burgess said. “Those advisers that stay close to the lending market and understand the appetite of the various providers will continue to attract and retain customers.”
Ian Boyce, general manager of property at Avanti Finance, acknowledged the efforts of advisers in supporting customers throughout 2023 and encouraged them to “do more of the same” in 2024.
“There’s a reason why more and more customers are going to advisers, rather than going direct with the banks,” Boyce said. “It’s the service they provide and their commitment to those customers, and over the most recent period, a lot of the work that they’re doing has been without reward.”
Boyce noted that advisers have been conducting comprehensive loan reviews for clients, aiding them in preparing for future opportunities or assisting them in managing their current budgets more effectively.
“I think the proactivity advisers have been displaying will stand them in good stead going forward.”
Key influences on non-bank lending in 2024
Burgess anticipates that increasing stability in the property market, coupled with certainty around interest rates, will instill greater confidence among borrowers.
“We expect to see lending demand complemented by more aggression from both non-bank and main bank providers in 2024,” he said. “For us at FMT, it’s about embracing the market and remaining responsive to it. Our expectation is one of growth in 2024, and that’s what we’re looking forward to at the moment.”
Avanti Finance’s actions are closely aligned with market trends, with Boyce expressing optimism about the market's growth.
“If the market grows, and I think it will, you talked before about green shoots – we’re starting to see more and more of that. We’re well placed to take advantage [of that growth],” he said.
Boyce emphasized the importance of seizing opportunities presented by these promising “green shoots” and highlights ongoing efforts in the technology space.
“How can we be more efficient in providing a service to our advisers and their customers? We’re working hard on those things,” he said. Avanti is focused on maintaining its presence in the market, “having the right conversations and being there to support advisers and customers as they need us.
“We all can share in a much bigger market. We’ve all suffered a little bit from a very constrained market, so we’re ready to support [advisers and customers] and look forward to really, really strong growth.”
To know more about Burgess’ and Boyce’s insights regarding the lending market, read the premium story.
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