It will all be over by Christmas, says Eddie Goldsmith, senior partner at Goldsmith Williams

I suspect that mortgage brokers were, like me, hoping that the worst of this economic downturn would be over by Christmas. We could then all look forward to a steady recovery throughout 2011and start building our business volumes once again.

Unfortunately, I don’t see anything on the horizon which gives me reason to believe that my wishes are going to come true. The housing and mortgage markets remain in the doldrums and the government’s spending review, which is still to happen at the time of writing this column, will undoubtedly results in yet more job losses and financial belt-tightening. I’m not normally a negative person, but I think we’re in for a hard economic winter – possibly the hardest of the recession so far.

Most businesses have already cut staff numbers and operating costs to the bone, leaving little scope for any further cost reductions. The only way to improve the bottom line is via an improvement in trading performance and if mortgage brokers are finding that their existing markets offer little prospect for growth, then they have to look beyond housing finance for new opportunities.

I know it has been said before, but brokers’ existing customers are their hottest prospects. The issue many brokers are juggling with is how to re-open a dialogue with clients to whom they sold a mortgage two or three years ago – should it be a free financial review or a more specific offer?

If I can offer any advice on this subject, it’s that most people I speak to at the moment are completely confused by financial matters. They’re unsure if they should be saving, paying off debt, boosting their pensions or spending money whilst interest rates are low and inflation is high. I get a strong sense that people are out of their comfort zone and need help to make sense of their finances. But to compound problems, they don’t know who to turn to – they don’t trust their banks any more and seeking information on the internet tends to create more questions than answers.

Herein lies an opportunity for brokers – to be the hub of their clients’ financial decision making. I believe that, despite all the benefits of being able to buy online, most people still value good old-fashioned advice and who better to get it from that the broker who gave them good advice in the past. And the advice should not be constrained to purely financial matters such as mortgages, savings and investments. It should also encompass related issues such as conveyancing and wills.

There is no doubt that the next year is going to be tough for everyone, but there are nonetheless pockets of opportunities out there and none more so that your existing client base. Now is a good time to remind them just how helpful you can be.