During this tumultuous time in the mortgage market, it’s more important than ever that advisers are experienced and educated to provide customers not only the best service but also the reassurance they need.
Naturally, borrowers may feel out of their depth or overwhelmed by the headlines they’re seeing day in and day out, and it’s an adviser’s job to put them at ease. To do that, education and experience are key.
We’re in a period where there is a cost of living crisis and a rising rate market — any advisers who haven’t traded in this environment before may feel unprepared, having only known the incredibly low rates we’ve seen in recent years.
But those ultra-low rates were far from the norm. As that period fades away, customers will naturally have questions and, in many cases, more complex financial situations to navigate.
Advisers need to be able to understand not only historic rates on mortgages but also have a sense of house prices and trends. Customers deserve a knowledgeable voice that can answer a range of questions.
We’re also still seeing some complex issues arise that may require more experience and education.
There’s an ongoing impact of the pandemic on mortgages. Some people are struggling financially, while others who are self-employed may need bespoke help to understand the impact of government assistance, bailout loans, and other unusual financial circumstances that came out of the lockdown period.
If the last few years have shown us anything, it’s that things can change quickly — so advisers need wide-ranging experience and training to be able to get the best for their customers.Things can change quickly, but now we’re seeing some swap rates stabilising and some lenders are already reducing their recent spike in interest rates. Knowing how these mechanisms work is vital to helping clients, as advisers need to be agile to catch what can be limited offers.
The Help to Buy scheme has recently closed to new applicants, so an educated mortgage adviser can help steer customers — especially first-time buyers — to alternatives.
With rising mortgage rates understandably spooking some first-time buyers, this is especially important to get buyers onto the housing ladder.
If customers have found that their income has been in flux or their financial goals have changed, an adviser can be a sounding board and provide essential advice about future financial goals.
Advisers are also crucial in assisting with mortgage protection, which can be especially important during a cost of living crisis when people may not feel their income is as stable.
Ultimately, mortgage advice should be bespoke and incorporate a lot of different moving parts.
Having an experienced broker in your corner to advise on these intricacies and nuances — and then liaise daily with the lender to progress your application efficiently — is crucial in these times of shifting criteria and lender appetite.
The truth is every borrower is different. Someone with a very straightforward case may have a lot of questions, and someone with a very complex case may feel like they only need a little guidance.
In either case, advisers need to be well-placed to respond quickly to an ever-changing market and spot opportunities for their borrowers.
And this period of uncertainty looks set to continue. Many experts are forecasting that prices will drop next year, which may provide an opportunity for first-time buyers while at the same time creating an additional challenge for some movers.
If the past few years have shown us anything, it’s that things can change quickly — so advisers need wide-ranging experience and training to be able to get the best for their customers, no matter what the circumstance.
Ian Megee is sales director at Strike Mortgages
