Predictions and top ten tips for intermediaries in 2004

Consolidation in businesses applying for principal status

- Some businesses who are thinking of applying for principal status will realise that it will not be economically viable for them to do so and will either cease trading, amalgamate with another business or alter their focus. At the beginning of the year, businesses should be thinking ahead to make sure any potential host is match fit.

Property Prices will remain stable

- Regional correction of property prices will continue but on the whole, we believe that prices will remain stable. Negative equity will be on people’s mind, but we should not see a significant number of properties being affected.

Interest Rates will rise slightly

- Don’t be surprised to find interest rates 0.5% higher this time next year. Businesses should be ‘contingency’ planning now for how this might affect affect both clients and business operations.

Buy to Let will remain steady and rental yields will increase slightly

- This market is maturing rapidly but still represents a sound investment. Many investors are in it for the long term and this should maintain some stability in the market. As equities continue to recover, new buy to let investors may decide on the stock market route. The buy to let remortgage market may well be an option worth investigating.

International Market will continue to soar

- As cheap flights abroad proliferate and overseas properties represent a sound investment, not to mention a sunnier climate, this market will continue to soar. The Englishman’s dream of owning his own home is rapidly becoming one of buying a holiday home abroad. Is providing a finance service for these people an option for your business?

Equity Release will become a more recognised method of funding retirement

- Although not without risks, this market area has a valid place for the right clients. Have you considered positioning your business in this market?

Thousands of mortgage brokers will make the wrong decision

- Appointed Rep or Directly Authorised? If AR, which host? Many brokers will make the wrong decision as they may pick a network that does not correctly fit around the business needs of their company. However, nothing is for life so if you make the wrong decision you can always change in the future.

Top ten intermediary tips for a profitable 2004 I

Think like a buyer

Why would someone buy from you? What is it that you offer that is different to your competitors – your unique selling point (USP)? Does your service and after sales care really live up to the promise? When you have decided this then make this the focus of your marketing and sales presentations.

Manage your prospects

Many prospects are lost to competitors by ineffective management. Work out what each of your prospects needs and most importantly when they need it. Then target the right solutions to these prospects at the right time. Remember to persevere; an initial rejection may be because the time was wrong as opposed to there being no client need at all.

Segment and Target your Client Bank

On a similar vein, you should segment your client bank into categories that can allow you to target specific solutions to your client needs. It will also help you identify clients whom you may never wish to contact again.

Speed up your internet connection

If you don’t use broadband then you should. With more and more mortgage business being submitted online just think how much more effectively you could work with a high speed, secure internet connection. It doesn’t cost a fortune.

Network your office

If you have more than a couple of computers in your office then you should operate a small office network. It’s not costly to install and allows the sharing of computer files, databases, printers, diaries and the internet.

Manage your business using management information

You should know at any time exactly what is going on in your business. How much is in the pipeline, what mortgages have completed, what your sales conversion ratios are and where your prospects come from. This can be done using quill and ink or a computer. As you can imagine I suggest option 2 and many good packages exist that are designed for the mortgage industry.

Right people – right jobs

Make sure that you have the right people doing the right jobs. It is all too common to see a mortgage adviser who could be earning in excess of £50 per hour doing £5 an hour jobs. By doing all these jobs yourself are your really saving money?

Investigate the Niche Mortgage Markets

Market areas such as international, buy to let, non conforming and equity release are flourishing. Should you be operating in these areas? If you want to design a plan to target these markets, some of our other tips will help with this.

Keep generating the prospects

Ask for referrals, use testimonials, purchase leads or align your business to suitable introducers such as estate agents, letting agents or insolvency practitioners. There really are many ways to generate prospects in the mortgage industry, you should never have no one to see in 2004.

Make an informed decision

Finally, you are well aware of the decisions that you need to make in the near future. Be sure to have studied your options and do not leave it to the last minute. Be sure that you choose the right option for you and your business both in the short and long term.