MD urges solutions to support property newcomers
The housing market needs an influx of first-time buyers - a dearth of them will impact the whole property chain, it’s warned.
Ahmed Bawa (pictured), managing director of Rosemount Financial Solutions IFA, believes that at the other end of the property ladder, existing homeowners are also cautious about downsizing, because of the implication of stamp duty costs.
Rosemount, which is based in Basingstoke, describes itself as one of the largest independent mortgage and financial planning networks in the UK.
“Without a steady stream of newcomers entering the housing market, the ripple effect is felt across the entire property chain,” Bawa told Mortgage Introducer.
“The increases to the Bank of England base rate have exacerbated affordability challenges for FTBs further, and the market desperately needs solutions, whether it’s through implementing a scheme similar to Help to Buy or introducing innovative alternatives.
“There’s also a segment of homeowners at the higher end of the property ladder who are hesitant to downsize due to the stamp duty costs involved. This reluctance has far-reaching implications for the market, contributing to inflated prices of larger properties. Therefore, reevaluating stamp duty policies could provide much-needed relief and contribute to a healthier, more balanced housing market.”
Why challenges present opportunities for brokers
Bawa, who has been in the financial services industry for over 30 years, retains a positive approach to overcoming difficulties.
“I often say, ‘chaos is our friend’, meaning that when our industry faces challenges, it’s actually an opportunity for us to help borrowers in need,” he urged. “We’ve seen this firsthand when the Bank of England raised interest rates. Borrowers were increasingly reaching out to brokers for advice. We may see the same thing again this year, as ongoing challenges around affordability mean more borrowers might seek the advice of a broker, potentially some who’ve never spoken to a broker before.”
Diversification could be the solution for brokers facing market uncertainty, believes Bawa.
“There’s always an element of the mortgage process that’s out of brokers’ control when that application passes to the lender,” he said. “We saw the extreme effects of this last year when lenders suddenly altered their rates, creating turmoil for brokers and their clients. Similarly, when a lender might move the goalposts at the last minute in terms of its criteria.
“Another barrier for some brokers can also be having the confidence to push themselves, perhaps venturing into areas of the market they haven’t explored before. An estimated 1.6 million borrowers are expected to remortgage this year, some of which may find their affordability has worsened or that they now fall into a more specialist category since they last remortgaged. This might present a challenge for some brokers, who may need to expand their expertise and navigate new product areas they haven’t encountered before.”
In Bawa’s view, technology will continue to play a significant role in shaping the mortgage industry..
“Both brokers and lenders are increasingly recognising the potential of automation to enhance efficiency,” he acknowledged.
“We’ve already seen impressive innovations using artificial intelligence and automation, and I expect we will see more this year. As an industry, we’ve come to realise that technology is on our side and when harnessed correctly, it can be a powerful tool that works to our advantage.”
He added: “With the introduction of Consumer Duty, there’s added pressure on providers to lower costs for consumers and ensure fair value. This, in turn, is also likely to drive further technological development.”
Read more: ‘Chaos is our friend’
How important is it for brokers to support each other?
The camaraderie of intermediaries can be game-changing, it seems.
“We’ve learned from our members that having a supportive community of brokers can make a significant difference,” said Bawa, “whether brokers are looking to branch out into specialist mortgages, protection, or financial planning. Our advisers often share their expertise with other members, whether it’s providing support or offering a referral route.”
After completing his Master of Business Administration (MBA), Bawa began his career with Allied Dunbar - now known as Zurich - where he became its national recruitment director. In 2005, he was one of several senior directors, who left Zurich to create the network Intrinsic, taking the role of business strategy director. It later rebranded as Quilter Financial Planning. Over the last five years ago, Bawa has run Rosemount on a full-time basis.
“When it comes to what I love most about financial services, it’s helping advisers fulfil their goals, whether that’s in business or personal development,” he said. “Despite being a large network, I like to meet and get to know each adviser.”
He summed up: “As a firm, our guiding principle is simple: treat everybody as you would wish to be treated. Whether it’s interacting with clients or collaborating with colleagues, if you practice this ethos, it’s difficult to go wrong.”
