"The idea that an employed individual’s income is any more secure than a contractor or sole trader is simply nonsense."
FR: The Mortgage Broker recently launched a promotion featuring free legal fees and a stamp duty incentive. How successful has that been and what other promotions are you planning for 2017?
We have been pleased with the interest since starting the campaign. We are offering clear value for our customers, plus the opportunity to win up to £5,000 towards stamp duty costs, so we are not surprised by the take up. We are always looking for ways to differentiate ourselves from the rest of the market and incentives can offer a cash value, which is in addition to the peace of mind that comes from the many customer endorsements we continue to receive each month.
FR: Where do you see the growth areas in the mortgage market in 2017?
We see the second charge market and complex prime as being good opportunities.
FR: What are the biggest issues facing the mortgage market in the current economic environment, and what should brokers be aware of when dealing with clients?
Uncertainty. It is very difficult to make plans on what to wear each morning if the forecasters can’t give you an idea of what weather to expect; the same goes for our economy. We simple don’t know what is over the horizon; there are clients who are conservative in their attitude to risk and those that are adventurous., rather than telling our customers what to think we provide solutions that match their thinking. So, we would suggest advisers don’t be prescriptive and give customers what they need, not what the adviser believes they should have.
FR: The Mortgage Broker specialises in niche markets – do you think that the industry should do more to support business owners, the self-employed and the over 50s?
Completely, there are some steps forward, but the industry needs to up its speed to a sprint for a while to catch up with modern living. The idea that an employed individual’s income is any more secure than a contractor or sole trader is simply nonsense.
Of course, there are exceptions to every rule, but, you look at trades, there is more work available than we have skilled tradesmen and should this start to fall off, well, the whole economy is in trouble. A borrower with appropriate mortgage protection in place is low risk, regardless of whether they have their tax paid for them, or, they do it themselves. We could go on, but, you don’t have the column inches for us to express our views fully. We are living and working longer and taking mortgages over increasing terms to make them affordable, policy and reality are still out of sync.
FR: If there was one headline that you would like to see about the housing market in 2017, what would it be?
House Price inflation stagnates. Might seem counter-intuitive, but, perhaps what we need is to assess our attitude to housing and have a pause long enough to enable more individuals to own their home and provide security of tenure for their families.
