Lender believes brokers must be proactive in their approach to customers
The mortgage market at present is in a precarious position, with much unrest and uncertainty impacting both those who operate in the space and their customers. It’s arguably never been more important to work together.
As such, Mortgage Introducer sought the views of a mortgage lender to understand how brokers could better support their clients as well as improve relations with lenders themselves.
Supporting clients
Jeremy Duncombe (pictured), managing director of Accord Mortgages, said there are many things that brokers could be doing to support their clients during this difficult time.
“This includes being proactive, reaching out to customers on a regular basis to check in, offering assistance on budgeting, financial planning and reducing costs, as well as perhaps pointing them to resources outlining how to save money, which could make a huge difference,” Duncombe said.
Duncombe believes knowledge is power, and therefore one of the best things brokers can do is really hone their own, up-to-the-minute knowledge, of what is happening in the market and why. This would, Duncombe said, enable brokers to explain things clearly to their clients, point them in the right direction with confidence and allay their concerns to some extent.
After all, he said borrowers have likely never needed brokers’ services as much as they do right now, which is as much an opportunity for intermediaries as it is a challenge.
“To help brokers ensure they keep up to speed with developments, they can, of course, speak to their local business development manager; but networks and mortgage clubs also offer a lot of support material,” Duncombe said.
He added that this can come in the form of a library of free educational content for brokers, aimed at helping advisers to grow their businesses, expand their knowledge and help their clients.
“Brokers may also be able to offer their clients practical support with things like debt consolidation to help reduce their outgoings, or review their protection needs to ensure they are covered for all eventualities,” Duncombe said.
Above all though, Duncombe said brokers have a responsibility to reassure their clients and explain what is happening in the market, especially when conditions are turbulent.
Enhancing relations with lenders
In the current climate, Duncombe said brokers and lenders need to support each other more than ever, so he believes it is important that, as an industry, they are all working together and pulling in the same direction to help mortgage customers.
“Brokers can facilitate this by ensuring they have a good understanding of how and why lenders do what they do,” Duncombe said.
For example, he said brokers must understand how lenders price and fund, as well as why product rates are pulled when they are.
“Brokers can also ensure they have a good appreciation of market dynamics, including swap rates, hedging strategies and the wider economy, which will feed into their ability to help manage their clients’ expectations and manage them proactively,” Duncombe added.
Lenders serving struggling customers
However, Duncombe said the role lenders play in improving customer outcomes is, too, an important position, and he added that lenders must encourage customers to speak up at the earliest opportunity if they are experiencing financial difficulty.
“Accord Mortgages, for example, can consider a range of short and long-term solutions to support borrowers, from permanent structural variations like term extensions to help make monthly payments more affordable, to shorter-term solutions to alleviate immediate pressures,” he said.
Lenders’ support teams, Duncombe said, must take care to understand the specific circumstances each customer is facing, and carry out an income and expenditure assessment in order to tailor help for them.
How do you believe brokers could improve support for clients and strengthen working relationships with lenders? Let us know in the comment section below.
