2021 was an incredibly busy year for the mortgage market, and 2022 promises to be just as fast paced for brokers.
Rising interest rates have pushed many borrowers to consider remortgaging and, with a wave of maturities on the horizon, brokers have the perfect opportunity to step up and support new and existing customers who are looking to fix rates for the future.
But even with these opportunities, brokers have their fair share of threats. It may seem as though we are beginning to emerge from the pandemic, but the expectation of a digital approach to doing business remains.
Brokers will need to find ways to engage increasingly tech-savvy customers, including a new cohort of first-time buyers who have grown up in the digital world.
Over the year ahead, staying prepared and proactive will be vital for brokers if they are to remain the go-to-choice for borrowers.
So how can brokers keep ahead of the competition and make the most of opportunities, including a potential boom in the remortgaging market?
Responding to changing customer habits
The mortgage market, like many other sectors, has been forced to rapidly digitise since the onset of Covid-19.
Today it’s easy for many borrowers to product transfer at the click of a button, and that may be the best route for some individuals to take, but for others it could mean missing out on finding the product which best fits their needs and circumstances.
This is where brokers can step in, playing a critical role by providing clients with a wider view of the mortgage market, helping them to potentially find a better deal. Yet, many borrowers are still unaware of the support brokers can provide.
Brokers need to make the most out of every opportunity to market the services they offer to new and existing customers.
Brokers have a number of tools at their disposal, including social media and newsletters to remind clients about their expertise and demonstrate their knowledge to new audiences. Facebook is a given, but using other platforms like TikTok can be a great way for brokers to build a presence with younger customers.
Keeping up with evolving market trends
£254 billion of residential and buy-to-let mortgages are set to mature in 2022. Many of the borrowers behind these products will be remortgaging with dramatically different circumstances after facing the challenges of Covid-19, and now rising living costs and interest rates.
Brokers can help customers manage these pressures by finding fixed rate deals that will lock down their mortgage rate. However, to have the best chance of helping their clients, brokers need to stay up to date on the latest deals in this fast changing sector.
Keeping proactive is also critical. Brokers need to consider engaging with customers now, particularly as rising interest rates may prompt borrowers to remortgage well before their fixed rate term is due to end. If brokers can provide support and expertise early on, they reduce the potential for clients to look elsewhere or end up on a lender’s SVR.
Make the most of new developments
There are new market trends that brokers should keep in mind when contacting and providing support to borrowers too. For instance, we are seeing more consumers switching on to climate change, driving demand for sustainable solutions in the mortgage market.
With many buyers now choosing to ‘improve, not move’, brokers can satisfy this demand by signposting them to green mortgages and initiatives, such as Coventry’s Green Together Reward.
Climate-conscious consumers and the pressures posed by the rising cost of living both provide opportunities for brokers to step up and support customers.
However, beating the competition and being the go-to source of support for customers means brokers must keep prepared and proactive in today’s mortgage market.
Jonathan Stinton, head of intermediary relationships, Coventry for intermediariesÂ
