See the big picture when addressing your clients' needs

18 January 2010

Mortgages in the main are relatively simple transactions. But of course, there’s always the odd one that causes complications and involves a few pitfalls along the way.

Reduced valuations, undisclosed credit and County Court judgements are all in a day’s work for an adviser trying to get deals through to completion.

But these things are relatively commonplace so any competent broker should take them in their stride, dealing with issues as they come up.

Mortgages generally move fairly smoothly to offer and completion and clients walk away happy.
But, are they right to be chuffed? Has the adviser, who seems to have done a great job in getting their mortgage through, really done them a good service?

For the past 18 months it’s been tough to be a mortgage broker. Hundreds of firms have left the market and it’s clear that only the strong will survive.

Shoppers can now buy insurance with their ketchup in Tesco and this concerns me greatly

I hear many comments to the effect that the worst is over and things will be better in the near future. While this is partially true advisers still need to maximise their opportunities and take on every aspect of each case.

I spoke to a fellow broker recently who told me that he was pleased with his efforts in 2009, completing in excess of 60 mortgages which was good going in the circumstances. But he still felt threatened and under pressure.

When I asked how many of those deals had term assurance the response was somewhat muted.

And how many did he arrange a buildings and contents policy for? Answer - less than 10.

Of course, consumers can now buy insurance with their ketchup in Tesco and this concerns me greatly. With no advice offered, it’s a sale of a selected product rather than a recommendation.

This could leave consumers over or underinsured and facing potential problems if they ever need the cover they are under the impression they have.

It’s no wonder that brokers find themselves staring down the barrel of that proverbial gun with regard to generating income while they remain so focussed on the mortgage aspect of deals.

Of course, this is the main focus of their client contact and the main reason for even meeting, but brokers who focus on this to the exclusion of other elements are not only doing their clients a disservice, they are also losing out on a serious source of income through ancillary product recommendations.

Life assurance, family income benefit, critical illness cover, mortgage payment protection insurance - the regular version as opposed to single premium, of course - solicitors’ referrals, investments and pensions, IFA referrals, buildings and contents insurance and so on can double or triple the income on a case.

This will leave the adviser pleased with his bank balance and ultimately leave the client feeling they have received a professional and comprehensive service. It could also lead to referral business from clients who have received a good set of recommendations.

Let’s ensure our industry is populated by professionals who take every chance to do a good job for every client while not shirking our responsibility to ourselves, the image of our industry and most importantly to clients who deserve the best we can give.

ROB ROBERTS
MORTGAGE SPECIALIST
CHARTWELL-FINANCIAL