How To Support Your Clients With a Fluctuating Market
We know our industry is changing rapidly, and looking back over the last 12 months it has been to say the least exceptional
We’re all aware, with global and domestic forces impacting the financial markets and causing inflation to soar, interest rates hitting levels unseen in the past 14 years, along with the rise in energy prices to name a few. This has led to the pressure for many clients on their household budget with challenges they have never faced previously.
Let’s look at first time buyers, we have Help to Buy ending this March. Saving a deposit being the biggest hurdle especially if they are already renting. There are other schemes that could assist for example, Kensington’s Heroes Mortgage designed for key workers, along with Their Young Professionals range, Barclays Springboard mortgage and for new builds, Nationwide’s Deposit Unlock, along with Joint Borrower Sole Proprietor mortgages and not forgetting bank of Mum and Dad! Let’s hope we see lenders launching more innovative products to fill the space left with Help to Buy.
As I’ve previously mentioned in my news round-up, and I make no apologies for addressing this again the value of advice has never been more important.
Clients have been used to low interest rates, and now with base rate at 4, the days of cheap fixed rates mortgages are gone. They will need educating on what the “new normal” looks like, help on resetting expectations, and how this will impact on their lifestyle going forward.
I’ll finish with my message again emphasising, maximise the opportunity with every client, it may not be a discussion around a fixed rate mortgage coming to an end, but a wellbeing call to see if you can potentially give any support.
Lenders Corner
In this section, I’ll focus on lenders with a quick overview of their USPs
Newcastle Building Society
- Ability to use income, including retirement income up to age 80 for Later Life Borrowers
- NEW BUILD – Up to 90% LTV on houses and 80% LTV on flats. Sales incentives accepted up to 5%, including builder’s gifted deposit
- Joint Mortgage Sole Proprietor available up to 95% LTV to support borrowers seeking to purchase or remortgage their home and require family support
- Up to 95%LTV available for purchases and remortgages including additional borrowing for home improvements or to pay off final share of shared equity loan*(T&C apply)
- Maximum term of 40 years for residential applicant’s mortgage term
Click here to Meet the Team – Newcastle Intermediary Services (newcastleis.co.uk)
Bank of Ireland
Are you aware of their Bespoke service? What is it?
Personalised and flexible service for good quality complex cases
Client needs to meet 5 Golden rules, then one of their Bespoke underwriters will individually access the case and take a common sense approach
What’s the Golden Rules
- Residential mortgage clients only
- Must pass their credit score and meet their minimum income and loan size requirements
- Up to 90 LTV (including fees)
- Income to support thee loan must be paid in GBP
- Up to 90% LTV (including fees)
- Meet their standard property criteria
To discuss further, contact your dedicated BDM.
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Anita White
Head of Lender Relationships
Did you know at The Right Mortgage, your in house Lifetime Mortgage Equity Release proposition is the best there is to offer for Network’s in the industry?
What does this mean for you?
If you see the need of a lifetime mortgage/ equity release, whether that be to help combat the rising cost of living, help those gain a larger house deposit from the bank of mum and dad/nan and grandad or to help clear an interest only mortgage (to name a few) – you can refer this to one of our 95 nationwide specialists within the network.
With The Network proposition being as top tier as it is, this means access to exclusive products, VIP service escalations for your customers with providers and boasting commission rates which are split 50% as a thank you. All of this right on your door step!
If you think you have a customer that could benefit from a chat about lifetime mortgages & equity release, please get in touch to get to know your most local equity release specialist.
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Victoria Wilson
Head of Equity Release
Making 2023 Protection Better Than 2022!
2x Podcasts this month… Guardian & Cirencester
Now this month we have not 1 but 2 provider podcasts. This is due to the fact I couldn’t record the Cirencester podcast last month, so you’ve got two to take a look at.
I’ve attached them to this month’s protection update and again, we’re keeping up the theme of focusing on the opportunities to talk to clients about protection this year.
Thank you to both Alan Waddington from Cirencester and to Paul Roberts from Guardian.
Hi everyone and welcome to this month’s protection update.
We’re getting ready for the NTE which takes place very soon on Wednesday 15th March at a brand-new venue – the Vox, Resorts World in Birmingham right next to the NEC.
It’s very exciting and we’re going to have a really good day.
Now the theme of our roadshows in January and also our NTE is “making 2023 better than 2022”.
That’s a broad theme across everything we do in terms of all the different advice areas, but when it comes to protection, how can we make this year even more successful than last year?
It might require us to think about things a little differently but I’m going to list a few ideas where the client is at the forefront of our thinking…
- Speak to more clients about protection risks…
A client taking a mortgage is also taking a risk. That risk is clearly explained every single time on the documentation they receive from you on the illustration and on the mortgage offer from the lender.
“Your home is at risk…”
Explain what this means every single time and explain that its about getting the mortgage to help you buy your home, but making sure you don’t lose it should the worst happen.
The ‘risk’ is about repossession. We all know what that means… clients know what that means.
And we know our clients don’t want that.
Repossession happens when client lose the ability to maintain mortgage payments.
There is your link… it gives you legitimacy to talk about protection either with yourself or with another specialist adviser if you refer on.. But someone needs to be having that conversation.
So in 2023; how many more clients can you speak to about simple basic protection risks related to mortgages?
- Carry out risk reviews with existing clients!
As I’ve just mentioned, mortgages carry risks because they are secured on the property.
Make a habit of contacting clients for other reasons than when the mortgage rate is up for review. Normalise that process and be confident.
If you have arranged a mortgage for one of your customers in the past; they know you and they trust you.
Get in touch and explain that as part of your normal process, you need to set up a meeting for a mortgage risk review…
If your clients are wondering what that is; just remind them about the risk statement; “Your home is at risk”
Remind them it is simply about making sure they don’t lose their home should the worst happen.
If they took out some protection, were there any gaps?
- Sickness or accident for example?
- Did they only take out life cover?
- Did they take out anything?
All of this requires you to be bold, be confident and be assertive.
Remind your clients its simply part of your duty of care to them…
That risk statement is a great opportunity to link to protection whether you’re arranging a new mortgage or reviewing an existing customer.
- Advise on quality not price
This week I had a catchup meeting with iPipeline who, as you know are the company that deliver your Solution Builder software.
Now I do get to see all sorts of breakdowns of statistics including who is quoting for new business, how many of these quotes turn into applications, which providers you like to use etc.
Now one thing which I think is quite interesting is the upsell opportunity.
Some of you are very good at this, but some, perhaps could do improve?
Let me explain what I mean?
Do you agree that generally speaking; in life, you get what you pay for? If you pay a bit more, you tend to get better quality?
Protection Insurance is the most important insurance consideration you will ever make?
And we know that there are some amazing features and benefits that mean you don’t have to die or have a serious illness to be able to use.
- Things such as being able to get an instant GP appointment is genuinely worth something. What about second medical opinion services?
- How about the actual coverage – some are much better than others.
I sat down with Claire at iPipeline and we looked at how many advisers across the network use the product features report.
This is the report which is free of charge and built into Solution Builder. It allows you to score many different aspects of protection policies at quote stage.
And for those advisers who do this regularly; they don’t typically recommend policies based on ‘cheapest’. They recommend policies which demonstrate higher quality.
So I’m going to give you an example and I’m going to work with gross figures here to keep things simple.
- Let’s say you are a firm who write 2 protection policies per week.
- Lets say you use the product features report to demonstrate better quality protection cover as part of your advice and recommendation.
- And let’s say that when you do this, you recommend products which are £5 per month more expensive.
Over the course of a year, how much difference would this make to your business?
I’m using the commission rates we get with Aviva for this example.
That £5 per month difference would yield a gross extra commission income of £12,667.
Just imagine if you write more than 2 protection policies per week.
Again, is this something you could consider doing?
If you are interested, get in touch and we will help you.
I look forward to seeing you at the NTE in a couple of weeks’ time. I’ll be running a protection panel discussion carrying on some of these themes called “Keeping your business and your clients protected”.
See you there!
Resources
Protection Tools – Compare Quality on Solution Builder
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Vincent O’Conner
Director of Products
Is PMI Moving From Luxury To Necessity With Record NHS Wait Times?
As of this month, the NHS waiting list is at 7.2 million people. With the recent strikes, the NHS is struggling. We have seen the biggest shift towards people and business seeing PMI as an important insurance.
Of those waiting for an appointment, 70% reported that they had been waiting for up to six months, around 8% reported they had been waiting between seven and 11 months and 18% reported they had been waiting for a year or longer.
The attitudes are shifting.
According to professor Sneh Khemka, CEO at Simplyhealth, his firm is seeing a “real shift” in attitudes towards private healthcare.
Insurers are creating more flexible products than ever: with the consultant select hospitals lists, we are able to provide really cost effective ways of taking out PMI.
Information Source: https://healthcareandprotection.com/why-pmi-cover-is-moving-from-luxury-to-necessity-amid-record-nhs-waits-analysis/
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Amy Wilson
Head of General Insurance (PMI and GI)
ASU or Home Insurance?
With storm season fast approaching, have you ensured that your customers have got the right cover in place?
Paymentshield have created some really nice guides to help you give your customers more than before. It will help them with the process of needing to make a claim in a hard time. There is even a ‘personal flood plan’ that your customrs can get ready to use now!
You can edit all these documents so you can add your logo and contact details, in order to send to customers.
Resources
Paymentshield – Brand your own leaflets
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Amy Wilson
Head of General Insurance (PMI and GI)
Goto Group Launch New Initiative For Clients
Hi everyone and welcome to this month’s Conveyancing update.
Goto Group have been in touch to launch a new initiative where your clients can sell their property with zero estate agency fees…
This unique reservation fee is already being used by 3 of the top 10 largest estate agents and you can now benefit by offering this to your clients. And, it could earn you up to £500.
Click on the thumbnail below to download sales aid.
To find out more, please take a look at the sales aid below:
But in the meantime, if you would like to follow up with Phoebe, please get in touch as she would be delighted to talk to you:
Phoebe Haywood
New Business Manager
Phone: 07464 546693
Telephone: 01844 873300
Website: https://www.gotogroup.co.uk/
Get in touch
Vincent O’Connor
Director of Products
