How the role of mortgage advisers is evolving in a changing UK housing market

Expert examines what's different now

How the role of mortgage advisers is evolving in a changing UK housing market

The UK housing market has experienced significant fluctuations in recent times, with significant changes shaping the role of advisers on a day-to-day basis.

During the COVID pandemic, Charlotte Nixon (pictured), proposition director for Quilter Financial Planning’s mortgage network, said the market was out of control and the sheer number of residential property transactions was astounding.

However, recent Office for National Statistics (ONS) data shows there has been a 19% drop in property transactions year-on-year, the majority of which can be attributed to the sharp rise in mortgage rates.

Nixon said for brokers to weather the storm, they must stay up to date on market conditions and expand their skillsets.

Leveraging expertise

By staying informed of the latest industry developments and leveraging their expertise, Nixon said mortgage advisers can identify potential clients who may benefit from refinancing or exploring alternative mortgage products. In addition, as more people struggle to enter the property market, she said advisers can play a crucial role in guiding first-time buyers through the complex mortgage landscape.

“In addition, while mortgage advice is growing in importance given the turbulence seen in recent times, so too is holistic financial advice, given the major impact of the current cost-of-living crisis and the recent government personal finance changes,” Nixon said.

As such, she said a potential solution for mortgage advisers to help weather market fluctuations is to transition into full financial adviser roles.

By expanding their skillsets to include a broader range of financial services, Nixon said advisers will be able to provide holistic advice to clients while also becoming less reliant on the uncontrollable movements of the housing market.

“This transition would help to not only increase the resilience of advisers, but also enhance their value proposition to clients,” Nixon added.

Those clients who are navigating the complexities of personal finance, Nixon said, can greatly benefit from a comprehensive approach that addresses all aspects of their financial well-being, for both them and their families, including investments, retirement planning, inheritance planning, and protection.

The next step

For those who have already dedicated themselves to a career in mortgage advice, Nixon said expanding on their abilities and becoming a qualified financial adviser represents a natural next step.

“There are a variety of academies and training programs designed to equip advisers with the knowledge and skills necessary to provide a wider range of financial services and to help build a robust client base,” she said.

Such academies typically incorporate a combination of classroom-based learning as well as practical experience, Nixon said, to ensure advisers have ample opportunity to develop from both a technical perspective, as well as in using the soft skills that are a key requirement of the role.

She added that academies also offer ongoing support to ensure that advisers are well prepared to navigate the ever-evolving financial landscape.

“While the UK housing market faces significant challenges, there are ample opportunities for mortgage advisers to adapt and thrive,” Nixon said.

By broadening their skillsets and transitioning into full financial advice, Nixon said advisers can become less reliant on market fluctuations while also better serving the needs of their clients.

How has your role evolved following the fluctuating market conditions of recent times? Let us know in the comment section below.