Analysis: Diversify during good times as well


Diversification is a no-brainer for those working in financial services. Indeed, keeping one’s eggs all in one basket has serious potential drawbacks in any line of business.

Immediately post-credit crunch, those who had relied purely on mortgage advice sales soon realised that, with the market drying up, this option would not be sustainable. As such, they turned to other product areas (bridging, protection, general insurance, legal services and conveyancing, to name but a few) in order to maintain income levels.

I am rather shocked when firms reveal they have turned away from such a strategy now the mortgage market is perceived to be buoyant again. This seems like a mistake and one that could cause real damage.

Diversification works across the board. It is why our business is active in both the broker and estate agency marketplace. It is also why many lettings agents are looking to expand into sales, while estate agents look at lettings services.

While perhaps a more recent phenomenon, this agency diversification has been brought about by many aspects of housing market life, such as competition, less supply, an increase in private rental activity and so on. I would suggest all of these are equally relevant to mortgage advisers too.

Of course, diversification to the nth degree may not be the right course. But those cross-sale opportunities and genuine financial product needs make perfect bedfellows for people seeking a mortgage/remortgage.