It may be all well and good discussing new business opportunities for intermediaries for 2006, but if intermediaries do not have robust systems in place to offer them and the time within their working day to take full advantage then many will simply pass them by.
Such systems that I make reference to are, for example, new business online systems, back-office data management systems and case submission via the Mortgage Trading Exchange (MTE). All these technological developments can streamline a business, save time and therefore save money. But what to do with that time?
Bigger picture
While many individual business areas will see modest growth through 2006, predictions are that the overall market will be smaller. Therefore, with this in mind, it will be imperative that intermediaries look to the bigger picture and ensure they are offering their clients the complete package and thereby getting the most out of each and every opportunity that presents itself.
It’s about adding value to the client and many mortgage advisers
in the past have been guilty of simply looking after the mortgage requirements and missing opportunities that will help grow their business and provide additional income steams.
‘Add-ons’ will be big business in the coming year and while previously they may have been seen to be ‘time-consuming’ or indeed ‘getting in the way of writing mortgage business’ they are set to becoming a key source of income to most mortgage intermediaries.
Hand-in-hand
In order to establish opportunities simply look to all the products that go hand-in-hand with any mortgage application. One area of prime opportunity would have to be general insurance and pure protection products such as income protection, health insurance and critical illness cover.
There are many companies that now offer efficient and professional broking services such as Lifequote, which offers access to all the leading providers of pure protection products through an easy-to-use online quotation system. It has a unique approach to processing protection applications through express underwriting and online case tracking.
With every mortgage application comes a conveyancing opportunity and simply by providing the client with a quote and making a recommendation to one of the many online conveyancing companies on offer, such as LMS or eConveyancer, an intermediary can earn up to £200 for every completed case sent.
Look around you
The list of products that sit comfortably alongside a mortgage goes on. However, I would not wish to patronise anyone by listing them individually, so instead let’s turn our attention to alternative products.
As I mentioned earlier, you must make the most of every opportunity. Are your clients looking to buy abroad? Why not offer to handle their overseas mortgage for them? Once again an intermediary can earn further income simply by making the introduction on the client’s behalf. And this is exactly the same scenario for commercial mortgages and secured loans which the FSA feels should be considered as part of the mortgage brokers’ armoury; they are all sectors of the finance market that are to a certain extent, uncharted territory for mortgage intermediaries yet bring with them significant earning potential.
For those qualified to offer advice on equity release this will also be an option but, that aside, 2006 could prove to present many opportunities to the mortgage market for those that have the systems in place to allow them to take them and for those that are prepared to look outside the box.
Nikki Haworth is head of Casemaster at Mortgage 2000
