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We are really happy to welcome Hemel Shah to the team

We are really happy to welcome Hemel Shah to the team

Hemel, ex-partner at John Charcol, has been tasked with developing B2B relationships and providing feedback on what’s important to brokers.

Hemel’s appointment shows our intention to always keep our customers at the heart of our business whilst pushing the technological envelope.

Hemel’s experience in the mortgage industry gives us vital input to create solutions that generate immediate value for the business whilst being simple and easy to use.

Hemel is here to help us bridge the gap between our technology and what brokers want.

Rameez Zafar, chief executive at Eligible

The market has been inundated with technology that focuses on ‘digitising’ the sales process but retaining the client relationship has been overlooked.

I have spent some time considering my next step and although there are numerous technology firms in the industry, there are few innovators genuinely looking to achieve the best outcome for both the broker and the client.

I look forward to working with client focused businesses that are passionate about building great client relationships.

Hemel Shah, Sales director

 

Want to find out more?

If you’re interested in finding out more feel free to Request a demo or get in touch.

Mortgage brokers it’s time to prove your lifetime value (or lose your clients forever)

Mortgage brokers it’s time to prove your lifetime value (or lose your clients forever)

Competition for your clients is increasing.

Nearly half of all product transfers done in 2018 was done on a non-advised basis. As the FCA highlighted in their Mortgage Market Study Interim Report, a significant minority of consumers (30%) purchase a mortgage despite there being an alternative mortgage that was “unambiguously cheaper than their chosen product”.

As brokers, we understand the value of the advice we give to the clients when we see their feedback and the positive outcomes on a daily basis. However, we need to adapt our behaviours to convey this value to our clients. Expectations around the services we offer and how we communicate with clients is ever-changing and we need to ensure that we keep up with these changes.

The current environment means more clients are taking five year fixed rates – nearly half of all fixed rates taken in 2018 were five years or more. Clients are more likely to require advice on options they may not have considered previously such as porting, further advances and second charge loans, as well as the other important decision brokers are often called upon to help with such as weighing up the financial and emotional costs of moving versus home improvements; if and how they should consolidate debts. These areas are increasingly likely to be the time where brokers are able to demonstrate the lifetime value of their advice over the alternatives.

One of the most neglected aspects of a brokers role is managing the client journey from the point of completion through to the end of the initial product period. There is a huge opportunity to improve this journey with regular, targeted communication that reminds the client that their broker is still available to them and their best source of knowledge.

Adding value to the product transfer process

Lenders are focusing more on client retention and improving the ease with which you can switch products. Whilst a broker may not be able to offer the same level ease of clients as a product transfer, they can add demonstrable value by conducting a market search to ensure the client is really getting the best product for their needs.

Whilst product transfers often pay a lower proc fee, they provide brokers with the opportunity to keep that client informed and active in their client bank. When a client cuts out the broker on a product transfer, the likelihood of that client returning in the future drops off a cliff. You lose the relevant information about their new mortgage and can’t communicate as effectively with them when their new product ends.

Whilst no two clients are the same, having a client-focused, robust, compliant processes will ensure that clients received a smooth, consistent journey in every interaction.

We know that brokers improve their client’s experiences and feelings towards their mortgage. We need to remind our clients of the value that we add over the lifetime of their mortgage and the benefit of regular conversations with their broker.

Want to find out more?

If you’re interested in finding out more feel free to Request a demo or get in touch.

Client Retention Is Important!

Client Retention Is Important!

The Technology Behind Client Retention

In virtually all industries, repeat business typically represents the highest quality business at the lowest “customer acquisition cost”. The mortgage industry is no different, where in many instances, the highest margin business is advising existing clients on remortgaging – because its those clients that cost the least to acquire and require the least amount of time and effort to complete.

Yet the institutional and systematic support for retaining – or, even better, maintaining – these clients relationships is often lacking. Technology, and a new breed of service providers to the mortgage industry, is developing quickly to overhaul the means of retaining these existing high-value clients.

 

Current House Price Trends Are Increasing The Importance Of Remortgages

The importance of remortgaging business to advisers and lenders is being accentuated by the current house price dynamic, particularly in London and the Southeast., Remortgages have become a bigger part of the mortgage market as house price appreciation has slowed and the number of transactions has fallen. In fact, in the first quarter of this year, remortgages overtook “house buyers” as the largest category of borrowers.

 

Rising Interest Rates May Prove A Catalyst To Remortgage

At the same time, interest rates remain near record lows, meaning many borrowers would benefit from remortgaging – although the tables may be turning…

Recent indications from the Bank of England suggest that it will increase its Base Rate before year end. Swap rates, upon which mortgages rates are typically based, have already increased substantially to reflect this: 5-year swap rates have moved from 0.5% to 0.75% over the past two months . Rates remain extremely low by historical standards, but they have begun to move higher – providing a catalyst for borrowers to remortgage now.

As interest rates have kept falling in recent years, despite repeated proclamations that they are “as low as they can go”, consumers have perhaps felt that it is their interest to wait to remortgage. However, if the current uptick in interest rates continues and particularly if it is spurred on by a high-profile move by the Bank of England to increase its Base Rate, consumers may see rising rates as a catalyst to remortgage “before it’s too late”. In short, the friction created by changing interest rates is likely to spur demand for remortgages.

 

The Increasing Impact Of Technology

The conclusion from all of this is something that the mortgage industry – indeed many industries – has always intuitively known: customer retention is important!

The good news is that technology, when deployed properly, can provide transformative support to client retention. From ad-hoc digital engagement that keeps an existing client “warm” to systematic, timely prompts so advisors know when to proactively re-engage customers that would benefit from remortgaging, technology can help efficiently harness this pool of high-quality, repeat customers.

Many of these approaches draw on lessons learned in similar industries, like financial advisors or wealth managers, including some of the tools associated with robo-advice. “Fintech” service providers now entering the mortgage industry are focused on digitizing parts of the industry that will benefit from the efficiency gains of increased automation.

But it’s not just about providing customer management services to advisers and lenders. Technology is here to improve the customer journey: to make the interactions with the providers of mortgages more impactful – and simpler. As customers utilize better, more digital experiences in other industries, they will come to demand of it of mortgage arrangers and providers. The mortgage industry must meet that demand, or incumbents will be challenged by new entrants that will.

 

The Human Adviser Will Remain At The Heart Of The Relationship

One-to-one advice and a tailored product offering based on a true understanding of a client’s needs are best achieved under the direction of a real person. The technology is here to make that person’s job far more efficient than it has been in the past.

By utilizing the appropriate technology, advisors and lenders are able to craft an appropriate hybrid approach: one that encompasses both the efficiency gains of technology and the unique benefits of the human touch.

Eligible is the UK’s first white label digital mortgage platform for intermediaries and lenders alike. One of its core products, Mortgage Watch, is a remortgage analytics and digital customer engagement tool that optimizes the management of existing customers in order to increase client retention.