How educated are young people about mortgages?

Younger people need better education about money and property-related matters such as mortgages, an industry expert has urged.

Mortgage and insurance specialist, Sam Clark (pictured), who is director of The Right Advice, in Solihull, warns that young people lack knowledge of debt and adverse credit.

“In our office we often speak about how schools/colleges do not teach much by way of financial literacy,” Clark told Mortgage Introducer. “We feel that younger people need to be given the opportunity to learn about the property journey, whether that be about the mortgage process, and the risks of accruing personal debt, such as credit cards/Klarna balances.

“The ability to ‘buy now pay later’ is frightening, yet these people do not know the issues that can arise from amassing personal debt or even missing payments. As a business, we would welcome the opportunity to talk to the younger generation and help them on their financial journey.”

With challenges persisting in the mortgage market, The Right Advice is seeing clients whose monthly payments have significantly increased.

“We will always be faced with lender criteria challenges and different client scenarios and we will not be able to get away from this,” Clark commented. “However, we see this as an opportunity and all the more reason to use a qualified adviser, so we can not only advise our client, but offer reassurance along the way.

“Will interest rates ever reduce back down to pandemic levels? We don’t know. However, we are seeing signs of improvement.”

What will the mortgage industry be like in 12 months’ time?

Clark predicts that, over the next 12 months, the industry will become more compliant, with greater support for its customers.

“With the implementation of Consumer Duty, we - as a business - are viewing this as a positive and an opportunity,” he stated. “A positive in that the consumer will always be getting the best outcome, and an opportunity in the fact that it is a ‘reason’ for advisers to have more thorough conversations with clients around multiple product areas. Some of the training lenders are rolling out to firms around things like fraud, are only helping strengthen the security of advisers’ business and the quality of it.”

The relationship between lenders and brokers is important, Clark believes, but suggests it can be enhanced.

“I would ask that lenders have enough BDM (business development manager) support,” he urged, “whether that be telephone-based or on the road, that are easily contactable, rather than at the present moment where we are having to spend a lot of time chasing or on hold. This just causes a lot of hold ups from our end and can cause unnecessary delays.”

The Right Advice - an authorised representative of The Right Mortgage - is three-years-old and has enjoyed great growth, from just two advisers when it started, through to 36 now, while also establishing a national presence. Its services include a retirement planning proposition for those looking to exit the industry.

Clark established himself as a self-employed trainee broker at The Right Mortgage, where he spent a couple of years learning the business before the opportunity arose to set up The Right Advice with his business partner, Amy Wilson. His career focus stemmed from an early interest in motorcross, as a boy.

“As a family we would travel the length and width of the country racing our bikes and watching the sport we love,” Clark recalled. “This sport taught me what commitment looked like, not only from a physical and mental aspect, but what commitment the family had to make as well.

“Towards the end of school/college this slowly reduced as I became more focused on my career. I was always ambitious and wanted to get straight to work so did not focus my time on the university route. I spent the first seven years after education working for Ferrari, which was an amazing experience. Starting out in the parts department and working my way through to sales, I learned every bit about the business. But what it really did was help me identify my desire to have my own business - a place I could bring the skills I have learned, to grow my own team and help people.

“I enjoy being a part of a regulated industry that requires continuous training, qualifications and knowledge. I love being able to help people, whether that be clients requiring our services, advisers within our firm wanting to grow, or advisers looking to retire and exit from the industry. I also like how the industry is developing as a whole, allowing advisers to have the ability to deliver quality advice.”

Read more: The Right Mortgage partners with Acre

The qualities of a good broker

So, what then does Clark believe makes an impressive broker?

“One that is thorough and has the ability to listen to clients,” he observed. “A good broker will take the time to advise the client thoroughly. On top of this, doing what they say they are going to do and delivering on those promises - never overpromise and underdeliver. Finally, being holistic with a full understanding of all solutions for customers.”

Outside of work, Clark enjoys holidays with his wife and family, and finds that time spent in the gym prompts new ideas and thoughts. In his career so far, he has learned the value of resilience and positivity.

“In business you cannot fall at the first hurdle,” Clark declared. “You need to just take things in your stride, learn from them, which is the key, and work to improve on this area. When certain things don’t go your way or how you had hoped, you have to push forward and be positive, working towards the end goal.”