Could the mortgage market undergo Uber-ification?

No one has yet invented the mortgage industry silver bullet; the idea that could transform the industry as we know it. But as our CEO Mark Lofthouse explains, it may be somewhere on the horizon, and we must be prepared for it.

Want a taxi? Not a problem.

Go onto the street and hail one, or book one over the phone. Simple and straightforward. It’s always been done that way, always will be. But in 2011, two men launched the Uber app, which allowed anyone with a smartphone to make a trip request and have the cab closest to them make the pick-up. Five years on and Bloomberg estimated the company’s revenues to be around $5.5 billion dollars.

Airbnb is another strong example of how an idea can come out of nowhere and change an industry forever. No matter how inconceivable an idea, we must remember that the possibility exists that someone, somewhere could come up with it at any time.

uber

But why can it happen?

One of the reasons is that no one ‘owns’ the taxi space. In the same way that no one ‘owns’ the mortgage space. As radical as it sounds, anyone is free to come in and be a ‘disruptor’, and if people like the idea then it could change the rules and irrevocably alter the way mortgages are sold!

The mortgage industry is rarely at the front of the queue for innovation. Apps, for example, were well established in other sectors before arriving in the mortgage market. ‘Robo advice’, however you interpret it, is commonplace in areas such as car and home insurance and it’s now in its early stages for mortgages.

So what’s the chance that our industry will be altered?

No one has yet come up with an idea that could transform our industry, and the idea that someone could may not seem all that attractive. But we shouldn’t close our minds to them or discount the idea that someone, somewhere, could be working on something radical.

Although, we do have to ask ourselves: what would it be? Would it allow consumers to have mortgages that are tailor made? Mortgages that automatically change whenever a new and more desirable product appears? Maybe even a completely new way of buying a house that makes mortgages redundant at a stroke?

They are ideas which may not seem feasible, but in 2017 and beyond they could well become reality.

Ideas don’t always make you an overnight success

It is worth noting that Techcrunch.com reports that Uber’s losses are expected to hit $3 billion in 2017, Airbnb has had it run ins with authority, and there will always be plenty of people willing and able to piggy back on the success of early adopters. But the tantalising possibility remains.

So what can the industry do about it?

It’s hard to fight against something that doesn’t exist and that no one knows anything about, so the best defence is to make the industry as future proof as possible. This means moving with the tech times and offering as high a level of professionalism as possible. As the technology and service improves, so the window for uber-ification is reduced.

In the meantime, keep watching the skies.

Mark Lofthouse on the Importance of Client Retention

Last month, our CEO Mark Lofthouse had an excellent opinion piece published online. The column covered the importance of client retention, a significant area vital to mortgage brokers.

We’ve broken down the top points from Mark’s column so you can easily digest the important information that he covers.

Don’t ‘just sell mortgages’
Any adviser who just ‘sells mortgages’ isn’t doing their job as well as they could. Mark explains that a role of a mortgage adviser extends far beyond simply advising and selling mortgages.
They must value each customer as an individual, and treat him or her as such. He says: “It is critical that the needs of the customer are met and the review and advice process should look at the customer’s overall needs and not just their mortgages.”

This will in turn increase your income.
Mark goes on to say that, if you acknowledge the individual needs of each customer, you are more likely to receive a lifetime of recurring business. On the reverse, you may be missing out on a great sum of income because you’re not paying due care and attention to your customers.

Provide a broader service.
Following on, Mark advises that, although we don’t want to be selling customers things they don’t want or need, offering extra services to them is beneficial, as if the client sees the services as good value, “they’ll be pleased you’ve taken the trouble to give them that extra level of service,” thus leading to recommendations to friends and family.

Regular contact is paramount.
Don’t just contact your clients when they are due a remortgage. It is vital that your customers stay in your thoughts as often as possible, and finding out more about them means you will be able to offer them further services in the future.

Mark states: “Finding out more about clients’ financial affairs also gives you a reason to stay in touch, either as a courtesy call every so often or when one of their products is due for renewal.”

Keep on top of the industry.
Mark’s closing points underline the importance of keeping abreast of the constant changes in the market. He outlines a myriad of knowledge about each customer you need to know, such as “knowledge of the prevailing provider service levels, what clients enquired about last time you saw them, awareness of their financial situation, and if you know them well, where they went on holiday or what their children are up to.”

But you can’t store this in your own head! To keep all this vital information, and to ensure you are organised, Mark emphasises the importance of using up-to-date front and back office technology, which everyone has at their disposal and should be taking advantage of, for example, our CRM system, the Key.

Follow Mark’s tips to become a better asset for your clients, and remember that “advising on more than just mortgages might take you out of your comfort zone, but the rewards to you and your clients are well worth it.”

If you would like to read the column in full, you can do so by clicking here.

Mortgage Vision 2016

2016’s Mortgage Vision events are drawing ever closer, and this year we are aiming to deliver even bigger and better events to all brokers who attend.

Starting from the 5th October, we’ll be travelling up and down the country, bringing you industry insights, information, and current and future opportunities within the UK mortgage market.

This year, we’ll also have a new Mortgage Vision app, which will enhance the overall adviser experience at all eight of our venues.

What is Mortgage Vision?
For those who are unaware, Mortgage Vision is a series of free-to-attend, annual events, organised and hosted by Mortgage Brain.

The events give attendees the chance to meet industry distributors and decision-makers, with headline speakers and our roundtable sessions ensuring all intermediaries who attend the events gain knowledge, which will help them improve their service and potentially bring in revenue for their business.

Of the events, Mortgage Brain’s CEO, Mark Lofthouse, said:

“With over 800 advisers attending in 2015, the Mortgage Vision events have gone from strength to strength and are considered to be one of the best and most informative mortgage events of the year. “The market is constantly changing, and we believe the Mortgage Vision events offer advisers the best platform to keep abreast of new challenges, make the most of

“The market is constantly changing, and we believe the Mortgage Vision events offer advisers the best platform to keep abreast of new challenges, make the most of new opportunities and learn from senior figures in the industry.”

Where can you find us?
There are eight Mortgage Vision events, which will take us all over the country.

We will begin on 5th October at Winchester’s Norton Park, before going to Arsenal’s Emirates Stadium in London (11th October), Aston Villa Football Club in Birmingham (13th October), and then Lancashire Cricket Club in Manchester (18th October).

In November, we’ll be travelling to Twickenham Stadium in London (2nd November), Newport’s Celtic Manor Resort (9th November), Oulton Hall in Leeds (15th November), before heading up to Newcastle’s Gateshead Marriott for our final event on the 16th November.

Who are the headline speakers?
We have some fantastic platform speakers who will be 2016’s Mortgage Vision events: The Association of Mortgage Intermediaries (AMI), Nationwide and The Mortgage Works, as well as our CEO Mark Lofthouse speaking on behalf of Mortgage Brain.

Robert Sinclair from AMI’s presentation entitled ‘Sharing our Worry Beads’ will be focusing on their latest discussions with the Regulator, the FCA, commenting on the forthcoming Mortgage Market Competition Review and Financial Advice Market Review plus explaining in more detail the FCA fees.

Nationwide/The Mortgage Works’ Adrian Scoates’ presentation ‘The Market, The Landlord, and The Taxman’ will be presenting about the current state of the Housing Market, Economy and BTL market and the implications of the changing tax regime.

And finally, our Mark Lofthouse will be speaking about ‘The Future of Technology? What about now?’ explain what does Robo and Digital Advice actually mean and what and how does it impact you and your relationship with current and potential clients?

Who will be presenting the roundtable sessions?
There will be ten exclusive roundtable sessions throughout the day. Whilst you remain seated presenters will take it in turns to arrive at your table and deliver their fifteen-minute session, before they move onto the next.

We have a whole host of excellent presenters this year for our roundtable sessions. They include: Aldermore, Clydesdale Bank, ConveyancingBrain, Fluent for Advisers, iPipeline, Mortgage Brain, Nationwide, Royal London, Santander, Skipton Intermediaries and The Mortgage Works.

You will get to see five roundtable speakers before we break for refreshments, with the other five afterwards.

What does the Mortgage Vision App offer?
Our app is a new addition to Mortgage Vision events, and it will be available to everyone who registers for our half-day events.

The app will provide information and biographies on all event speakers and their presentations, as well as locations, parking details, and the all important event agenda so you know exactly what is going on and when.

What else can I expect from the events?
Attending a Mortgage Vision event will allow you to claim 3.5 CPD hours towards the CII member CPD scheme. This will be emailed to you after you have attended the event.

There will also be plenty of opportunities throughout the morning to network with other brokers, as well as a free lunch at the end of the day.

Each of the eight events begins with registration from 8.45am, with Platform Presentations starting promptly at 9:30am and we aim to finish between 1.45pm and 2pm followed by a free lunch.

We are aiming to make 2016’s events even bigger and better than the previous years, so make sure you join us to understand the further changes that are on the Horizon and how they will Impact you.

For more information, and to reserve your place at a Mortgage Vision event in your city, visit our website today.