How can mortgage professionals survive a recession?

Broker firm director lists five key things to do to ride out the storm

How can mortgage professionals survive a recession?

Is the mortgage industry ready to cope with a recession?

According to director of Dimora Mortgages, Jamie Lennox, just the mere mention of the word was enough to send a shiver down the spine of many mortgage professionals.

There would be panic among brokers about an impending economic decline and the impact it might have on their firms, believed Lennox (pictured).

However, a downturn also created huge opportunities for firms, he said, and there were ways for mortgage firms to become recession-proof.

Here are his top five things to consider to survive the storm:

Firstly, social media. Lennox has started a marketing firm, which provides designs for other brokers to post under their branding.

“Consumers are shifting more and more to finding business using social media channels such as Facebook, Instagram and Tiktok,” said Lennox.  “If your business isn’t on there, you will be missing a huge segment of potential customers that you could easily reach.

“However, if you enter this space of marketing, you need to be consistent. Posting once per month won’t cut the mustard. You should aim for a bare minimum of three posts per week, and cover useful topics about the house buying process, answering commonly asked question to build trust with the following you are looking to build, and over time, the customers will trickle in.”

Lennox had already seen more leads flow in through this activity. 

Read more: Brokers – here’s how to survive a tough economic period.

Secondly, he advised colleagues in the mortgage industry to “become an expert in a niche.”

“You may be the go-to person locally, but become the go-to person in a certain niche nationally,” said Lennox. “Looking at ways you can help a set type of clients that may struggle with an everyday adviser. Whether that’s fixed term contractors, foreign nationals, or a set job type, become the go-to person for other people in that situation.”

Thirdly, upskilling was important, Lennox explained, adding that if the market did flag, it presented that perfect opportunity to offer alternative services, for example, taking the Certificate in Regulated Equity Release (CeRER) – an area likely to grow given the pressures surrounding the cost-of-living. “Upskill on insurance products,” Lennox shared. “We all know it’s easy to get lost arranging mortgages day in and day out. Mortgages may die down, but the requirement for people needing to protect themselves and loved ones doesn’t.”

Read more: What is the future of the UK mortgage market?

The fourth tip was to ask for referrals.

 “Don’t be afraid to ask every customer if they know someone – friends or family – who you could also help in this worrying time,” he said. 

Finally, he said offering free wills could boost business for a mortgage firm or professional.

“There are several companies that now offer brokers the opportunity to use their service to provide their clients with free will for a set price to their business each month,” Lennox stated. “This gives you a fantastic opportunity with marketing, and to generate insurance and mortgage business for the future.”