More brokers are expanding their services
According to research by Legal and General Mortgage Club, 80% of brokers are expanding their business by adding extra income streams.
Some lending areas such as buy-to-let and mortgages for first-time homebuyers have slowed. The demand for bridging loans, on the other hand, has grown.
Many mortgage brokers want to expand by offering
bridging finance, but this is a specialist area that requires expertise. Some brokers already have expert staff that can advise on bridging finance, whilst other brokers are considering partnering with businesses that already offer specialist bridging loans.
Technology such as automated systems that provide financial advice are seen as competition, but brokers and lenders are emphasising quality customer service, with some making themselves available after normal business hours to talk to clients. Brokers can form a long-term relationship with borrowers so that they are able to understand exactly what they want, and what their financial circumstances are like. They are the first call that a client makes when purchasing new property.
Some experts believe that the new business model for a broker will be creating a place where people can go for all their financial products. Residential or commercial mortgages can be arranged, as well as related insurance such as building insurance. A broker will source a bridging loan if a house purchase is held up by a house buying chain. Brokers can also arrange second charge mortgages.
By providing a wide range of financial products and excellent customer service, a broker can meet their client’s expectations and remain profitable.