View more on these topics

Penny starting to drop for mortgage brokers

Despite the wave of recent bad news in the wider financial markets with the demise of Lehman’s and the problems facing Merill Lynch and AIG, are we finally starting to see some potential green shoots in the loans sector I wonder?

Link loans have recently launched while First European and others are becoming a little more aggressive in their marketing activity.

Furthermore, mortgage brokers are beginning to understand the ease with which they can professionally integrate loans into their business.

Although the old referral process and suedo sourcing systems don’t really cut it anymore, the best sourcing and sales systems in the loans sector are now better than many being used in the mainstream mortgage market according to the mortgage brokers who have tried both.

For mortgage brokers, loans are such an easy income stream. They can earn over £1000 for 15 minutes work if they choose the right partner and the technology can be hugely effective.

Such technology can deliver a fantastic point of sale service for both brokers and their clients but without brokers having to get involved in any of the abortive costs.

Whilst some master brokers have recently looked to pass these abortive costs onto their introducers, most will undertake all the post sale work and pay the broker handsome commissions.

Not bad for a few minutes work and no risk of being landed with abortive costs.

The opportunities are out there for brokers to earn additional income while at the same time working smarter by harnessing technology to take the leg work away.

Brokers need no previous experience as the best online systems embrace whole of market secured loans plus unsecured loans and look after the entire packaging of the loan while providing help and advice along the way.

With regard to specific opportunities for brokers to sell secured loans to their clients, energy saving improvements offer great potential.

As reported on this web site recently, environment minister Phil Woolas has said that home owners should borrow against their homes in order to pay for wall and loft insulation. The comments came as Prime Minister Gordon Brown announced a £910m package to help borrowers cope with increasing energy prices.

Woolas is reported as saying: “People who want to invest in their homes have got an asset to borrow against. Loft insulations are expected to save homeowners up to £250 a year, which means the speedy repayment of any loan. The difficulty with the credit crunch is you can only get 75% of a mortgage.

“If you are an existing householder it is easier to borrow against this energy efficiency initiative because the pay-back period is so good.”

Brokers have a great opportunity to leverage these comments and government support as fuel prices continue to rise and environmental issues remain high on the social agenda.

I firmly believe that the time is right for mortgage brokers to ensure they better understand the loans market, take advantage of the significant income stream and to be better placed to offer loans to their clients given all the help and support available.


BoE ignores liquidity pleas

The Intermediary Mortgage Lenders Association has warned that appeals to the Bank of England to restore liquidity are continuing to fall on deaf ears.


News and expert analysis straight to your inbox

Sign up