Brokers discuss building positive relationships with clients
The economic outlook in the UK and the cost-of-living crisis has had a significant impact on the mindset of homebuyers, with many feeling it’s not the right time to buy.
For many buyers, of course, that may well be the case – but for brokers who come across clients that do have the ability to make their move, how can they break that negativity and get them to take steps forward?
Mortgage Introducer reached out to brokers for their experiences and tips on the best approaches.
Who is affected by the mindset of being unable to buy?
Steven, mortgage and protection adviser at The Mortgage Co, said that it is not just renters worried about being able to buy. He added home-movers too have expressed their concerns, due to the high interest rate environment, as well as restrictive lender criteria.
“We are hoping that lenders making their criteria less restrictive will mean the mortgage repayments are more palatable,” Hargreaves said.
Michelle Lawson (pictured left), director at Lawson Financial, agreed with Hargreaves that renters and movers alike are struggling with the mindset of feeling they are unable to buy.
Lawson added that the public is very quick to speak to friends or take social media advice, which can result in them being misled.
“I had an enquiry this week where a friend had told the client they would need the same three years income history as they were self-employed; with further questioning, I established they were under the CIS scheme which rendered them as ‘employed’ in a number of lenders’ eyes,” she said.
As such, Lawson believes customers need to speak to experts to ensure they do not get the wrong guidance.
How do you change that negative mindset over buying a home?
Diarmuid Phoenix (pictured right), mortgage and protection adviser at Mint Mortgages & Protection, said with so much doom and gloom surrounding the difficulties of accessing the property ladder, many will feel that buying is for others, not them.
“However, for advisers, undertaking basic affordability checks and taking customers through the options available to them, can leave many pleasantly surprised that they can indeed get on to the ladder now,” he said.
Customer confidence and trust, Phoenix said, can be gained by taking the extra care and time to properly plan an achievable budget.
“This in turn helps clients shift from the shackles of eternally lining the pockets of their landlords, to investing in their future,” he added.
James Bull, mortgage broker at JB Mortgages, agreed with Phoenix that many people feel that they cannot get a mortgage. Bull believes this can stem from the fact a customer has been declined by their own bank, or they have a misconception about their circumstances.
“I always tell clients there is no such thing as a ‘no’, the worst case scenario is that I will tell a client ‘if you go away and do X, Y and Z’, and then come back in a certain amount of time, we will be able to help,” he said.
In most cases, Bull said clients are happy with this, as it gives them a realistic plan of action so they can get a mortgage in the future.
How do you help clients overcome the mindset of being unable to buy a home? Let us know in the comment section below.
