In challenging times such as this, it often feels like the first instinct for many in the mortgage market is to talk it down. They will often look at the market as the sum of its challenges. To be fair, there are plenty of them right now – whether it’s rate uncertainty, product shelf life and affordability pressures or wider economic and geopolitical uncertainty.
We shouldn’t pretend these challenges are not real. They are. We shouldn’t be uber positive or adopt the Frank Drebin approach either, proclaiming there’s “Nothing to see here”.
However, there’s certainly a difference between being realistic about the challenges and acknowledging them and allowing those conditions to define the entire narrative of the market.
While it’s always important to have one eye on what’s going on around us and the forces that shape our market, the danger is that we become too focused on that macro picture and lose sight of the opportunities that are actually in front of us.
When our attention is focused on bemoaning those macro challenges or sticking our heads in the sand, we risk forgetting about the ones and twos that can actually make all the difference in the mortgage market.
They are the individual customers who have an ambition to buy their own home, but for one reason or another have decided it’s just not possible. Perhaps they haven’t spoken to a broker. Perhaps they assume affordability is out of reach. Perhaps they are waiting for rates to return to “normal” – whatever that means in their minds – or for the wider market to improve.
There will be those for whom buying today isn’t right – it’s a “not now”, rather than a no. For many more though, they will be surprised by just what is possible when they seek advice and find someone who takes the time to understand their circumstances and properly explore their options.
That is the value of advice.
It’s a reminder to control what we can control. It’s all too easy to get hung up on bank rate, swap rates, mortgage pricing, transaction volumes or the next economic or political headline. Instead of worrying about these things, what we can control is how we engage with potential customers.
Do our customers know that a broad range of opportunities exist beyond what is left on the high street? Are we doing enough to talk about low and even zero deposit options or the likes of Shared Ownership? Do customers know about part-exchange and new-build incentives? Let’s not forget the tremendous growth of the specialist market and options for adverse customers.
Crucially, are we doing enough to show we exist, to demonstrate the purpose of an adviser and the value of advice in making homeownership a reality?
When customers are surrounded by uncertainty, negative headlines and outdated views of the market, they need someone who can take what is a complicated market and explain what it actually means for them and their individual situation.
It comes back to moving beyond “how we get the market moving” to “Who I can help today?”
That could be one customer who thought they’d never be able to buy. One couple who stopped looking or are sat on their hands. One first-time buyer that hasn’t yet had a conversation with a broker. One client that can’t face the thought of moving again or a previous enquiry that’s gone cold.
Ultimately, those ones and twos represent the market.
Let’s forget about the millions of transactions, the billions of pounds in lending or the movements in basis points. Even the highest-flying advice business is built one customer at a time. Now more than ever, those ones and twos really matter.
We shouldn’t ignore the challenges facing the market or those moments that create a natural hesitation. We shouldn’t be surprised to see a new Prime Minister and an impending Budget disrupt the flow of the market. We also shouldn’t pretend that everything’s brilliant.
But neither should we let the challenges define every conversation we have. We must control what we can control.
There are plenty of people out there who are willing and capable of buying their own home, but simply don’t know it yet. Our job is to be proactive in finding them, understanding where they are, what they’d like to achieve and giving them the advice they need to make an informed decision.
My intent is not oversimplify the task at hand or underplay the challenges, but to remind all brokers to look after the ones and twos. If you don’t, I’m sure there is another adviser who will.
