As a mortgage market – and indeed as a country – we’ve not had a Bank Base Rate (BBR) cut for so long that it’s clearly going to be informative to see how August’s Monetary Policy Committee (MPC) cut lands, and what impact it has right across the board, particularly in terms of generating demand.
We need to go back to March 2020, right at the start of lockdown, for our last cut when the Bank moved BBR down from 0.25% to 0.1%, and that’s where rates sat for almost two years, before the first rise in December 2021.
Through that period we all know it was a significantly busy time within the property market, particularly after the first lockdown when all that pent-up demand was unleashed plus we had the so-called ‘race for space’ as homeowners sought outside space in order to make any potential future lockdown much easier to contend with.
Since then it has been a steady stream of rate increases one after the other, as the Bank struggled to get to grips with rampant inflation.
Now, however, with this month’s cut, we might all be wondering what happens next.
We had the first inkling of what impact this could have with the latest update from Rightmove, and it seems like a positive initial assessment, and for advisers could mark a significant opportunity to enhance their business volumes or income.
Rightmove reports that, since the BBR cut, the number of potential buyers contacting estate agents has increased by 19% compared to the same period last year and 11% up on July 2024, indicating a renewed confidence in the market, which might seem even more significant given it is summer holiday season.
This is a stark contrast to the subdued activity seen in summer 2023, when high inflation and peak mortgage rates dampened buyer enthusiasm.
For mortgage advisers, this resurgence in buyer interest should be viewed as more than just a seasonal fluctuation and it certainly represents a chance to expand service offerings and increase revenue.
As buyers become more active, the opportunity to review and offer a range of ancillary services, alongside the mortgage needs, grows.
This could take the form of protection, general insurance (GI), conveyancing, legal, or others, and is where advisers can differentiate themselves.
Conveyancing, in particular, is a critical component that can often cause delays and stress if not handled efficiently.
By integrating conveyancing advice into your offering, advisers can provide a more seamless and satisfying experience for their clients.
Using a platform like ours can be particularly beneficial in this context.
Broker Conveyancing allows mortgage advisers to easily incorporate conveyancing into their service portfolio, offering access to a network of vetted solicitors and conveyancers.
This integration ensures clients receive a reliable and timely service, reducing the frustrations that often accompany property transactions.
For mortgage advisers, the benefits are two-fold: not only do they enhance client satisfaction, but they also generate additional income through referral fees.
This is especially important in a market where every transaction counts, and in a Consumer Duty environment, where the onus is on servicing as many client wants and needs with effective solutions.
Let’s also not forget the time efficiency which can be gained by managing multiple aspects of the home-buying process in one place allowing advisers to focus on growing their business rather than juggling different service providers, or sending their client base off in different directions where an element of control is always going to be lost.
The current market conditions therefore present an ideal moment for mortgage advisers to capitalise on these opportunities.
By offering a full suite of services, including conveyancing, advisers can meet the growing demand for a comprehensive, hassle-free, home-buying experience.
This not only sets them apart from competitors but also positions them to thrive as the market (hopefully) continues to recover.
With buyer activity on the rise and mortgage rates beginning to decline, the outlook is increasingly optimistic.
Mortgage advisers who can offer added value through integrated services are likely to see significant benefits in both client satisfaction and business growth.
Mark Tosetti is chief executive officer of Broker Conveyancing
