A survey of brokers at the recent Mortgage Business Expo found that over half believed revenue from mortgage sales had fallen over the last 12 months.
In addition, one in six didn’t think things would improve next year, painting a bleak picture of the short-term outlook for advisers.
As expected, advisers are citing a number of reasons for the downturn in the mortgage and housing markets including LTV ratios, concerns about the economy including poor job security, lack of affordability and issues with evidencing income.
But whatever the reason, the upshot is that brokers need to plug the gap that the lack of mortgage revenue has left. This could present an opportunity to revisit customers who have recently bought houses or remortgaged to discuss their protection needs.
There are a number of trigger points for buying protection, some of which will be the same as for a mortgage purchase. These include marriage, the birth of children or a house purchase.
Once the dust has settled and the trauma of moving has faded, it could be a good time to ask clients whether they have other financial needs you can help with.
I find protection providers are more than happy to provide useful materials and tools to help advisers sell protection as this type of cover is sold not bought.
Even if it is not your area of expertise, selling protection or another type of financial product is not off-limits and may provide the commission you need in the short term.