"Hell will freeze over before the regulator, government or industry bodies educate people in some sort of joined up way"
For brokers, one of the biggest challenges they overcome in their day-to-day role is convincing customers that they are able to buy. But, how do they achieve this and how do they build trust with their clients?
Mortgage Introducer reached out to a number of advisers to find out.
How do brokers build trust with clients?
Simon Bridgland (pictured left), broker and director at Release Freedom, said renters often come with the illusion that they cannot get a mortgage, perhaps due to the size of the deposit needed or their employment status.
“Some simply do not know how to go about obtaining one; most renters would be first-time buyers so it is no surprise they have lots of doubt swirling around,” he said.
Bridgland added that the best way to overcome these doubts is to simply ask the customer what it is they want, and then lay out all the options in a clear way they are comfortable understanding.
Fully explaining all options available in a very short space of time, he said, is likely the most tricky hurdle to overcome, as often there is too much choice. So, Bridgland said it is important that brokers find out what their clients want from their mortgage.
Another hurdle for brokers, Bridgland said, is counteracting family members with good intentions, as they can often give incorrect or out of date information to the customer, planting the seeds of doubt that they are stumbling on.
One way to overcome this, Bridgland added, is social proof and pointing customers toward review sites, which also helps build trust.
Rhys Schofield (pictured right), brand director at Peak Mortgages and Protection, said as a general rule of thumb, people usually assume their situation is worse than it actually is. For example, he questioned how many people who are struggling to save a deposit are aware that Santander allow a personal loan as deposit.
“Quite frankly hell will freeze over before the regulator, government or industry bodies educate people in some sort of joined up way,” Schofield said.
As such, Schofield agreed with Bridgland that this leaves a void for brokers to fill, which can be resolved by evidencing social proof, which in turn builds trust with customers.
How to overcome the fear of purchasing a home?
Emma Jones, managing director at When The Bank Says No, said many prospective homeowners are suffering from ‘homeowner imposter syndrome.’
“The best guidance to any renter who thinks homeownership is unreachable is to get initial advice from an adviser who will assess affordability, deposits required and budget,” Jones said.
Jones added that helping customers to build a plan to homeownership not only assists them in realising their goal is achievable, but it also develops trust.
“For some, it is the fear of being rejected or not being in a position right now to buy; an adviser’s job is to help remove this fear and address any questions no matter how small,” she said.
Elliott Benson, owner and mortgage broker at Sett Mortgages, said a big issue for many prospective homeowners is misinformation.
“Some people still think they cannot get a mortgage if they are self-employed, and some are shocked to find that they do not stay with the same deal for a full 40 year mortgage,” he said.
Benson added that there are a lot of myths about buying which have to be overcome in the initial conversation with a client. This is why, he added, explaining every step of the process carefully and thoroughly during the first meeting is essential.
What is the best way to help customers overcome the mindset of being unable to buy? Let us know in the comment section below.
