Without a doubt the mortgage market is going through a state of change at the moment. Market conditions are completely different to this time last year or even a few months, days and even hours ago. For this reason it has never been more important for brokers to hone their basic sales skills in order to both satisfy their clients’ requirements and make their business a success.
Due to the difficult market conditions, customers need the advice of a broker more than ever. The influx of information in the media about the credit crunch means that consumers are baffled as to what to do for the best or, in fact, what they’ll be able to do when their current mortgage deal comes to an end. Some of the gloomiest press coverage suggests that some clients may find it difficult to remortgage when their current deal comes to an end.
These fears are backed up by figures from the Intermediary Mortgage Lenders Association (IMLA) which shows that 68 per cent of mortgage brokers have been unable to source a mortgage for clients in the past two months. So it is time for intermediaries to get back to basics and do what they do best; this is not a time for order taking, it’s a time to use your selling skills. While the following tips may seem obvious, they are more important than ever to put into action when meeting clients.
Set an agenda
It is important for brokers to set their agenda at the start of a first meeting with a client and state their position as a qualified, professional person who is there to look at all the financial circumstances and needs of a client. Gone are the days when intermediaries were simply order takers when the market was buoyant and volumes were high. A comprehensive fact find is a vital part of this process and will enable intermediaries to find out which other products a client may need or benefit from.
Educate clients
Brokers must also ensure they are well placed to put the credit crunch and current economic circumstances into context. People want to know how it will affect them personally. Clients need to be educated as to the benefits of tracker products but also made aware of the consequences if rates were to rise.
Contact leads ASAP
Intermediaries also need to look at how they generate and handle leads. Compared to two years ago, it’s harder to convert a lead into a sale as it’s unlikely that a case will be handed to you on a plate and be as straightforward as previously. However you get your leads, it’s vital to contact them as soon as they are received to maximise the chances of conversion. Leave a lead for longer than a few hours and it goes cold and you risk losing the business. Even if you can’t get hold of the potential client at first, second or even third attempt, persevere.
Network!
It is important to treat every conversation as a networking opportunity. Find out if the client works in an office and ask if the client’s colleagues may benefit from you holding a surgery style event to offer financial advice.
Stay in touch
It pays dividends to keep in regular contact with clients and be ready to advise them when their current product comes to an end. However, it’s necessary to appreciate that customers coming off cheap fixed deals will now be remortgaging onto a higher rate and while spending more money might not be their priority, other products could be beneficial in the current market situation. Brokers must look at the protection needs of clients in four different life stages - single, couple, family and divorced – and be ready to advise the client as their circumstances change.
Regular reviews
Getting commitment from clients for regular reviews demonstrates your professionalism and it makes good business sense. Always follow these through when you say you will. Wherever possible explain to clients you work on referrals and always leave them with a number of business cards as they are likely to have family, friends or colleagues who need your professional advice and guidance.
Say thank you
It is always worthwhile to thank your clients for their business upon completion whether it is a simple email or call, or a card. Customers remember gestures such as this and the importance of securing repeat business in today’s market can’t be overstated.
Top ten tips
1. The first meeting – ensure a full fact-find is carried out to establish a client’s needs.
2. At mortgage application stage, point out to the client that as their adviser you will ensure they are made should a better deal comes onto the market prior to completion that they could benefit from.
3. Always ask for referrals at the end of every meeting and hand out three business cards for clients to pass on.
4. Keep your clients up to date at all stages of the application process, via telephone, email or text.
5. Ensure you have a footnote at the bottom of your emails stating you work only on referrals.
6. Send a ‘new home’ card to clients on completion of a new purchase - preferably send it to their place of work for maximum impact.
7. Join a networking committee, eg a breakfast referral group (Viv says: “I used to get two leads a week from the breakfast group I attended).
8. Carry out annual reviews and contact your clients every 12 months. Their circumstances may have changed but, if not, you have ensured you are at the forefront of their thoughts should this be the case in the near future.
9. Ensure all signatories are present where possible when placing protection or investments in trust – they could be future clients.
10. Network, network, network.
