Adviser forges own path an independent broker after redundancy
Broker in Focus is a dedicated series that highlights the unique journeys of mortgage brokers, providing them with a platform to share their experiences, insights, and expertise. Through compelling personal stories and professional reflections, each featured broker recounts the key moments that have shaped their careers, delves into the challenges and opportunities facing the industry today, and shares the valuable wisdom they have gained along the way.
Mortgage Introducer caught up with Richard Jennings (pictured), who turned a redundancy after 16 years in the banking sector into an opportunity to forge his own path as an independent mortgage broker. Establishing his own brokerage during the pandemic, Jennings saw the chance to break free from the limitations of a single lender and offer his clients greater choice and flexibility.
Full name: Richard Jennings
Job title: Firm principal
Company: Richard Jennings Mortgage Services
Number of years in the industry: 22
Location: Carlisle and Dumfries
How and when did you become a mortgage broker?
I set my company up in April 2020, Richard Jennings Mortgage Services, following 16 years of working for retail banks and a redundancy. I opted to go for self-employment brokering as my entire career is in mortgages. I have always disliked the restriction of working for a single firm and the lack of choice that are provided to clients.
In your opinion, what has been the most positive development in broking?
I strongly believe those lenders who successfully integrate technology into their processes have helped change the landscape significantly. From lenders who will use an AVM which cuts down on administration and saves the clients time to those lenders who have implemented salary referencing such as Nationwide.
Over the last few years, we have also seen significant newcomers to the market who, like Perenna, are trying to change the industry and offer something different to the normal with increased borrowing capabilities due to their longer and life term fixed products.
What challenges do you see currently facing the industry?
While the percentage of clients’ income that is used for mortgages is much lower than it has been for over a decade, the reality is that affordability will continue to be the biggest barrier due to the continually increasing cost of groceries, utilities and general living.
This, combined with a change in how employment contracts are organised, will place greater focus on the need for flexibility within lenders’ criteria to help bridge that gap and ensure the lack of a traditional permanent contract isn’t an entry to home ownership.
Can you share a memorable or challenging experience from your career as a broker and the lessons you gained from it?
I think the biggest challenge which any new brokerage will face is on client attrition and knowing which route to take. There are countless SEO experts emailing you on a daily basis all promising you first spot on Google. There are introducers who promise a consistent quality flow of leads that deliver sporadic and often poor quality.
The biggest lesson I have learnt from these challenges is take everything with a pinch of salt, create robust introducer agreements and regularly review these relationships. Don’t be afraid to say no to something that doesn’t feel right. Ultimately owning your own marketing strategy and pushing yourself out of your comfort zone is what will bring a regular, consistent and manageable client flow.
Over and above this, you have the daily challenges of slow underwriting from some lenders, an inability to think outside of the box or agree to anything that doesn’t tick a certain box regarding policy. You quickly learn which lenders can adapt, provide flexibility, and whom have a great BDM that will guide and support your applications.
Could you share any valuable advice for individuals aspiring to become brokers or those new to broking?
Take the chance, believe in yourself. It is scary to begin a new venture, particularly if you are coming from a background, as I did, where you were unable to bring a client bank with you. Do your research, decide whether you want to be a RI with a firm or start as your own AR firm. Each has its pros and cons but speak to as many people as you can and ultimately focus on the people you will be surrounded by, the working relationships you will create and less on the monetary side of it. There will be countless sleepless nights. Every day is a learning day as you learn to become a business owner in addition to being a mortgage broker.
Broker in Focus is a weekly Mortgage Introducer feature, spotlighting mortgage brokers from diverse backgrounds and locations across the UK. Among those recently featured are Barry Wise of The Mortgage Pod, Bob Singh of Chess Mortgages, Matt Davey of Peritus Private Finance, Chris Hall of 1st Call 4 Mortgages, Akhil Mair of Our Mortgage Broker, and Bola Anike of Elmgrove Financial Services.
Are you a mortgage broker interested in being featured? Email the author with your details.
