How can a broker survive in business in the current economy?

If a mortgage broker prioritises their clients’ interests, and goes above and beyond in the service they provide, they will survive in business, even in challenging times.

That’s according to experienced business owner Kim Balasubramaniam, who has weathered two recessions in her career and is now thriving as a senior mortgage broker at The Mortgage Mum.

Her optimism for overcoming life’s hurdles might also inspire the leaders of the main political parties in the run up to the General Election (but more of that later).

Balasubramaniam (pictured), who previously operated a wedding planning service, believes there is a greater need for mortgage advisers at the moment.

“There’s no doubt that the current market is challenging but I honestly believe that we are needed more than ever,” she told Mortgage Introducer. “I always said as a wedding planner that it was something that people wished they’d had in hindsight if they didn’t engage the services of one, and it’s similar with a mortgage broker.

“Clients might start off thinking that they don’t need us, but quickly realise what a game changer it is working with someone who knows their stuff. I’ve run a business through two recessions and if I’ve learnt anything, it’s that if you put your client’s interests at the heart of what you do, provide incredible service and go above and beyond, you’ll survive - and ultimately come out stronger the other side.”

Based in Sussex, Balasubramaniam joined The Mortgage Mum as a new broker in 2022.  The Mortgage Mum had been founded just three years earlier by Sarah Tucker and Jamie Lewis, and today it is a female-led collective of over 30 self-employed, UK-wide brokers, working with more than 50 lenders. Its value of lending overseas was £200 million in 2023.

What is the outlook for the mortgage industry in 12 months’ time?

Balasubramaniam, who works with clients across the country, is optimistic that the industry will be more stable in a year’s time, and acknowledges there is still some volatility.

“I’m hoping we’ll feel like things are a little less turbulent in 12 months’ time, but who knows!” she said. “It still feels like rates are changing left, right and centre, not to such an extent that they were a few months ago, but there’s still some turbulence there.”

With an election due in a matter of months, Balasubramaniam is curious to know what the politicians campaigning for our votes offer by way of incentives, but she believes that they need to be a little more creative in their offering than they have been to date.

“It will be interesting to see what pledges are made about the housing market and mortgage industry during the election year,” she observed, “I think we can all agree that the spring budget wasn’t particularly useful for us, so it would be a positive move if there were some enhancements put in place later in the year.

“I feel like it needs greater thought than just another stamp duty cut though – we need real help in place to enable more people to get started on the property ladder with more, proper, affordable housing built. That’s where it all starts - and it’s great to have seen some recent initiatives from lenders to address this - but if the politicians could also put something in place that would be great. What that will look like is unclear, but they need to be more innovative for sure.”

Read more: International Women’s Day 2024: Taking stock of mortgage’s progress on equality

How important is it for mortgage brokers to have good relationships with lenders?

Balasubramaniam considers The Mortgage Mum team is fortunate to enjoy really good relationships with its key lenders and business development managers.

“In a world where everything seems to be heading down the route of AI and digital assistants, having those one-to-one relationships is absolutely vital,” she noted. “Clients also really appreciate it when they know we have talked through their case with a lender before we go to application as it adds another layer of trust and confidence that everything will be okay.

“It would be nice if we had slightly more notice some times of rate changes, but equally understand the pressures of the market as it stands, and that these decisions often need to be made at short notice.”

In a still rapidly changing market, expectations of clients are adapting, according to Balasubramaniam.

“Clients do seem to be getting used to this ‘new normal’, which is encouraging, and we have certainly seen a growth in the number of new clients we have taken on in Q1 of this year, so the signs are positive,” she said. “I’m forever the optimist, so I think the future is bright.”