"UK Finance recently predicted that first-time buyer purchases would soon outstrip owner purchases, which seems to represent a strong business generating opportunity for both brokers and lenders"
Even though the lack of flying cars is something of a disappointment, given drone technology and the general pushing of the envelope we see right across the board, I can’t imagine we’re too far away. Although I suspect Air Traffic Control might have a thing or two to say about that.
Back on the ground, and more specifically within our sector, what can we expect from 2018? Certainly, the last 12 months we have seen a serious debate around the introduction of ‘robo mortgage advice’ and it seems inevitable that more propositions will be launched, as firms attempt to engage with a customer-base increasingly comfortable with online advice. It’s doubtful that it will become the norm – simply because clients are likely to want to talk to someone about their biggest purchase/financial decision at some point – but we should not discount the fact that there will be consumers who are quite willing and able to go through the entire process in this way.
With such an assumption, we perhaps have to turn to the first-time buyer market as it seems likely that the pre-Millennial generation – were they Generation X or Y? – will be more inclined to take their mortgage advice online. Clearly, it’s been the remortgage market that has been the driving force of the sector in recent months/years, but the latest figures do seem to show growth in the number of first-time buyer purchases, and there is certainly a lot of Government investment and resource being put into getting more people onto the housing ladder.
Indeed, UK Finance recently predicted that first-time buyer purchases would soon outstrip owner purchases, which seems to represent a strong business generating opportunity for both brokers and lenders in this sector. Engaging with that younger buyer group however is not as simple as it sounds, especially if you do not have an online robo mortgage advice proposition that could certainly work as an introduction to them.
Of course, these individuals – completely new to the whole process – are going to rely on recommendations and referrals when it comes to securing advice however it’s also very likely they will start their journey online, even if it’s just seeing what’s out there for them, what products they might be able to secure, and indeed what sources of advice there are. In that sense, as an adviser, what’s your online presence like? Is your website up to scratch? Does it allow the user to access mortgage calculators and conduct an indicative product search? Perhaps you have a live chat function that will allow users to talk to a human being? Or perhaps you’re way down the line and already have that robo advice proposition that can do all of the above and much more.
Whatever your current situation, upping the level of ‘tech’ will undoubtedly make your more attractive to not just a younger ‘consumer’ of mortgage advice, but I suspect (as time moves on) it will also be valuable across all age groups, especially second-steppers and home-owners who are completely comfortable with their online purchasing habits, and may also be wanting to access such propositions.
We can talk about the future coming, but in a very real sense it’s already here. The Open Banking regulations are now go, and although they will only initially be used for current accounts, there is an obvious range of advantages in having this data for mortgages, in terms of ascertaining affordability and suitability. Again, now would be the time to explore how you can best make use of this – probably through aggregators – and how it might help you deliver a much more rounded and quicker service offering.
I wish you much luck throughout the rest of the year, and it seems likely that those who continue to embrace the tech that is available will be the ones who secure the rewards in the future.
