Six months into the year and we still seem to be enjoying a buoyant market. With contradicting views from industry analysts for the rest of the year, it’s clear that you either fall into either a ‘glass half full’ or a ‘glass half empty’ view of life.
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As interest rates rise and consumers take on more debt, we need to make sure as a network that our brokers are not just providing the products to fulfil the demand for more credit but are also offering the protection solutions as well.
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We shouldn’t forget that we are approaching the time where a large number of fixed rate mortgages are coming to an end and many consumers will be seeing their payments moving up from an average of 4.50 per cent to a standard variable rate of nearer 8 per cent.
Where does ‘Treating Customers Fairly’ (TCF) feature in this scenario? Well if as a broker you wrote to the consumer saying you would review the client’s circumstances then under the new rules you need to follow this through. By not doing this, the broker runs the risk of complaints and undue attention from the regulator, with the customer ultimately suffering what is becoming increasingly known as ‘rate shock’ as their mortgage payments increase significantly overnight.
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Brokers should not see the current market as a glass half empty. There are a number of positive outcomes that can drive up earnings and be of benefit to both broker and client.
