The mortgage industry has recently been digesting recommendations brought forward by the Financial Conduct Authority (FCA) in its ‘Mortgages Market Study’ – a long-awaited final report into our sector which has been two years in the making.
It’s fantastic to have such a thorough report analysing our industry that confirms the great work going on in a challenging market. It also leaves us with some recommendations, including the creation of an ‘intermediary choice tool’ for consumers. In other words, a platform to help clients identify the right mortgage adviser for their needs.
Getting the best solution is vital
The FCA’s central reasoning behind this is to ensure that people are getting the best deal on their mortgage, and the best way to do so is to ensure that you’re working with the right adviser. We couldn’t agree more and believe that anything working towards this end is positive! However, 16 years of experience tells us that technology is no substitute for an expert team of advisers, a strong network of global financers and a determined approach to get the most suitable deal for each and every client, no matter how complex their situation.
The issue with technology is it can only tell you the black and white story; it doesn’t allow for grey. Naturally, we want to negotiate the best possible rates for our clients, but often that is just one metric. There are myriad other factors.
One example is flexibility: some of our clients demand the highest level of flexibility and are happy to negotiate on rates in order to secure it. Some situations are so incredibly complex that we have to scour our network of 200 lenders globally to find a solution that others simply can’t. We are equipped with the most up-to-date technology to help us do this, but much of what we hold is in our relationships and knowledge built up over decades.
Every case is a challenge
Technology is no substitute for lasting relationships built on trust – the kind of relationships we enjoy with many of our long-standing clients. It also can’t explain nuances in complex situations – not yet anyway!
It’s these nuances which saw us work with a panel of 100 different lenders last year. Just two lenders received more than 8% of our business, so we certainly don’t take the easy route of ‘same old, same old.’ There can be no such attitude when you’re dealing with the type of challenges we face on a daily basis. It’s what keeps us motivated and determined to succeed where others simply can’t.
The future’s bright
We watch with interest the next steps and the potential development of a platform. Ultimately, anything which helps clients find the right broker is to be welcomed. However, online tools won’t be replacing this team anytime soon – we are 100% human and ready for the next challenge!
If you would like to discuss any aspect of lending, do not hesitate to get in touch.
Your home may be repossessed if you do not keep up repayments on your mortgage.