How Can Mortgage Brokers Benefit From a Slow Economy?gary
Many financial pundits are now not expecting the UK economy to turn around until late 2022 and even though many mortgage brokers are still working flat out at the minute, this won’t last forever. Hardly a surprise given the ever-present Covid problem with long-Covid increasingly looking like an economic as well as a physiological condition. In fact, I would say it might even be slightly worse than that since we have now discovered that the US are struggling to maintain their triple A credit rating in the face of mounting debts, 130% of GDP expected before the end of 2021.
I think the recession has been accepted a bit more stoically in the UK, due to a lot of bad government decisions in the past, like selling gold reserves when gold was at its lowest level for decades, giving government spending a blank check and the departing treasury minister leaving that infamous note for his successor stating, “there is no money left”. I won’t go on about it because you know the sort of thing I mean, but the net result is the vast majority of Brits do realise times are bad and will be like this for some time now.
The good news however is that some aspects of a slower economy can be made to work for small businesses since they not only require less capital to operate but can also react more quickly in exploring additional products and sources of work. As far as financial services is concerned, as always, one of the crucial things is to keep in contact with your client base, don’t let them forget you are there, whatever their needs, and cross sell like a beast. Remember if they want something and you’re not providing them with it then one of your competitors is!
Insurance is the big and obvious thing here, but although I say obvious is often ignored or not covered well. By this I mean it might work if you send out an email or letter asking clients if they need any further cover. However, in times when money is short it is much more likely to succeed if clients receive a letter/email/SMS message telling them that because times are hard and everyone could do with a keeping a bit more money in their pockets you are carrying out reviews of clients insurance arrangements to either save them money or provide them with additional cover for the same amount. Do it properly and you’ll be amazed at how much you can save your customers and of course the revenue this will bring in for you, In fact if you’re not that busy and feeling a bit bored you could always ring a few of the best prospects up for more of a personal touch?
Prior to the birth of Which Network, as an independent mortgage broker I remember doing this for a client near Newcastle who turned out to have a total of eight policies in place, three of which would never have paid out as they were written to cover specific loans which had been paid off or in the case of one policy was related to a job which the client had left four years ago. If we look at the exercise in terms of “bang per buck”, the replacement, simplified cover, provided an increased amount of cover by 120%, reduced their total monthly insurance premiums by 30% and provided me with a very nice commission payment. The only warning I will give though is, you actually need to take action on this, having just read this article won’t do the trick and if you’re having difficulty tracking what exactly you have and haven’t sold clients, other than using specialised client management software then use something like the magic matrix or a similar system and you might also like to have a quick have a look at this list to see if you’re missing anything obvious.