In May this year, the FCA released its Mortgage Market Study (MMS), outlining its view of the industry as it stands, and where it would like to see it move in the future. Within the report, several recommendations were made as to changes that could, and possibly should, occur in the market. Our CEO Conor Murphy has taken a look through the FCA’s points to see what they might mean for brokers.
One of the most important findings from the FCA’s Mortgage Market Study (MMS) was that a huge number of borrowers use an intermediary because they value the experience and expertise that brokers bring. According to the MMS, just over 3 in 4 (76%) of those who have taken out a residential mortgage (or switched product) in the last 3 years and did so through a mortgage intermediary agreed that the intermediary helped them to consider options they had not thought of. Furthermore, nearly 9 in 10 (89%) agree the broker understood their needs, and three-quarters (75%) agree they got a better deal than they would have got on their own.
Advice is clearly still a vital piece in the mortgage journey, and the industry needs to be doing everything it can to protect the role of advice. Brokers can play an active role here by using technology, such as Smartr365, to maximise the time they can spend communicating directly with clients to guide them through the mortgage journey.
A key component of valuable advice is being able to compare a wide variety of products to ensure that borrowers have access to the best deal for them, which is a point the MMS argues strongly. The MMS found that brokers are limited in the extent to which they can compare mortgages, particularly in assessing the likelihood of acceptance, because of limits on the information available to them.
Again, technology such as Smartr365 can solve this issue and ensure that brokers provide the best possible service to the borrower. Integrations with sourcing providers and affordability checking services, such as our recent partnership with MOGOPlus, mean that brokers can access all the information they need from within the Smartr365 platform and deliver decisions to borrowers in record time.
Delivering value for money to borrowers was a key theme in the MMS. This puts pressure on brokers to ensure that the service they provide is exceptional and, crucially, speedy. Given the poorly performing housing market and wider economic uncertainty, there is significant pressure on every client interaction and conversation. The only way for brokers to deliver a quick, high quality service with valuable advice at its heart is by using technology to remove administrative burden, and automate and speed up processes which have traditionally slowed down the mortgage process.
To find out how you can use Smartr365 to grow your business in the process, head to our website or make an enquiry here: firstname.lastname@example.org