Brokers need to diversify
Brokers need to diversify
Recent research conducted by Legal and General Mortgage Club has revealed that over 80% of brokers will look to diversify their business models and income streams over the coming months as shifting market landscapes and emerging technologies combine to place an increasing onus on the benefits of offering broader ranges of financial services.
The downturn in previously secure markets (such as buy-to-let or first-time residential property sales), as well as the perceived threat of robo-advice and other cyber-innovations, are cited by many brokers as evidence of a need to expand their products and services. Indeed, industry experts have been recommending diversification as a means of ‘future proofing’ businesses from the impact of as yet undetected factors.
Furthermore, of course, evolving expectations as to the remit of customer service and the increasingly widespread belief that financial needs could (and should) be catered ‘under one roof’, offer a compelling argument for expanding horizons and product ranges (especially if they relate to core businesses).
By developing knowledge and awareness of specialist products that fall outside of traditional areas of business (such as second charge mortgages, bridging loans and the like), brokers can make better informed decisions for clients and look to build longer term relations with their custom bases. Moreover, repeat custom that is predicated on multiple services and strong foundations of trust can yield wider sources of revenue and offer better chances of growth.
Many brokers have become accustomed to selling insurance products alongside mortgages, so a similar ‘shift’ towards specialist products that reflect changing needs and circumstances shouldn’t be too much of a leap- just look at the surge in second charge mortgages over 2017 and the similar growth in bridging loan business (with 65% of brokers reporting increases in loan volumes for Q3 2017).
And, if this seems like a step too far at the present time, then brokers can consider partnering with businesses that do offer specialist products. Either way, with uncertain political and economic factors presenting their own challenges, more and more brokers are beginning to realise that they need to be jack of all trades, master of SOME to survive.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk