Equally unsurprising is the fact that lenders are processing fewer applications each day. In other words, they have not recruited enough processors to counteract the increase in processing time. Mind you, they could argue that this was prudent given the low volumes of business.But as bad as these figures are, they are not as bad as some brokers I have spoken to who tell me they are only processing half as many applications since regulation. I’m not looking for brownie points but I did predict some nine months ago that more brokers would be forced to start charging broker fees than have done in the past. I also suggested that those charging fees would have to think of increasing them to reflect the additional work. For many trying to extract up to 1.5% of the loan as a commission is a problem as they are aware clients can walk into any high street lender and get a mortgage without paying a fee. This even applies to sub-prime. So how do you justify your broker fee? Why not kill two birds with one stone? Many have a problem with fee justification, and even more worry about the dreaded sales ‘close’. There have been countless books and even training courses dedicated to the close. I got good closing advice early in my career so it was rarely a problem for me. I was taught to first sell yourself as people buy from those they like, to start closing from the beginning and to justify the fee all the way through the presentation, not wait until the end. And the best way to deal with potential problem questions is for you, not the client, to raise them. Regarding fee justification, tell the client what you offer in the way of service and that you are able to offer products tailored to suit them. Try not to generalise – make them feel you are giving them special treatment. To minimise the risk of the oldest problem in the mortgage industry – the client picks your brains then goes direct to the lender you recommended – have an exclusive as a back-up. Even if the client doesn’t meet the criteria for your exclusive, by saying early on you often have deals not available on the high street you suggest you have an edge over high street lenders. The sooner you learn to deal with the fear of asking for a broker fee, the sooner you will start enjoying selling and seeing your bank balance grow.
- Top trends
Bristol & West is to consolidate its mortgage processing into two centres in Bristol and Solihull. The move will involve the closure of the lender’s distributed mortgage processing units during 2006. B&W says the announcement is being made well in advance of the change in order to ensure a smooth transition for brokers. The move […]
The Chancellor announced on July 19 2005 that he had asked Sir Nicholas Stern to lead a major review of the economics of climate change, to understand more comprehensively the nature of the economic challenges and how they can be met, in the UK and globally.The Terms of Reference for the review have now been […]
Charles Haresnape is to leave the Royal Bank of Scotland this Friday as director of NatWest Mortgages.Haresnape says he is considering a number of offers, but will be staying within the mortgage industry.He says the move comes after a restructure within the company, and although his replacement has not been decided upon, it is thought […]
The Joseph Rowntree Foundation says over 1.25 million younger households in England, Scotland and Wales have incomes too high to qualify for Housing Benefit if living in social rented accommodation but too low to afford a mortgage on even the cheapest homes for in their areas.
George Osborne announced in his July Budget speech that the UK will introduce a new National Living Wage in April 2016. So what – if anything – does this mean for employee benefits?
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