What educational support do brokers need?

In recent years the market has grown increasingly complex, in part due to the economic challenges and regulatory changes.

So, what further educational support do brokers need to best help their clients?

What educational support is needed for mortgage brokers?

Simon Bridgland (pictured left), broker and director at Release Freedom, said enhancing education and support regarding the legal intricacies of property transactions would prove advantageous.

This, he added, is not merely to empower advisers to dispense legal advice, but rather to furnish them with a comprehensive understanding of certain transactions.

“Education, undeniably, stands as one of the most potent tools in an adviser’s arsenal, equipping them with the knowledge and confidence requisite for effectively guiding clients through complex scenarios,” Bridgland said.

Bridgland said it is not uncommon for advisers to encounter moments of uncertainty, akin to a deer caught in headlights when confronted with the proverbial ‘one in a million’ question.

“While the instinctual response might be to defer to legal counsel with the disclaimer, ‘I am not a legal adviser; you need to seek legal advice,’ such instances represent missed opportunities for advisers to provide added value to their clientele,” he added.

Bridgland said the ability to navigate these intricate queries with poise and assurance, backed by a robust understanding of legal implications, would not only bolster the adviser’s credibility, but also enhance the overall client experience.

By investing in further education and support, Bridgland said advisers can proactively anticipate potential hurdles, offer informed insights, and ultimately foster a more enriching advisory experience for their clientele.

“Thus, the pursuit of continuous education in this domain emerges as a strategic imperative, one that promises to yield dividends not only for advisers but, ultimately, for the clients they serve,” he said.

Education needed around protection

Chris Schutrups (pictured right), founder at The Mortgage Hut, said in the protection market there is a need for product providers to offer robust training initiatives.

Particularly during slower periods in the market cycle, Schutrups said brokers often pivot their focus towards emphasising the protection aspect of their customers’ financial strategies.

“However, a notable gap persists, especially for newer entrants to the industry who may lack adequate training in this critical area,” he said. Compounding this issue, Schutrups said, is the fact that regulatory requirements for proficiency in protection products are relatively low.

“Despite the prevalence of mortgage transactions, there remains a conspicuous disparity between the number of mortgages secured and the level of protection sought by borrowers,” Schutrups said.

This disconnect, he added, highlights a crucial gap in consumer understanding and underscores the vital role of knowledgeable advisers in bridging this divide.

Schutrups believes a concerted effort is needed among regulatory bodies, industry trade associations, product providers, and large broking firms to collaborate in elevating the skill and expertise of advisers.

“By pooling resources and expertise, stakeholders can develop comprehensive training programs that empower advisers to effectively educate clients on the risks inherent in mortgage commitments, and the importance of safeguarding their financial well-being through appropriate protection measures,” Schutrups said.

What areas of the market do you believe brokers need further educational support in? Let us know in the comment section below.