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Celebrating sign up success 🥳

Celebrating sign up success 🥳

Pass the cake!

This week, Censeo Financial is the latest firm to jump on board and sign up to Retain!

We’re thrilled to onboard Censeo, as they join firms such as Andrews Property Group, AS Financial, Linear Financial Solutions and Easy Switch, to name a few – already on Retain 🎉.

Rupi Hunjan, CEO, Censeo Financial said:

We’re looking forward to what Retain can do for our business. We’re impressed with the results it’s delivered for firms so far considering its still very new to the mortgage market.

Celebrating Retain sign ups

 

Retain works for all shapes and sizes

The interest for the solution spans across the mortgage market, proving fit for various types of firms.

Shared ownership specialist Censeo joins with over 10 advisers, Andrews Property Group has 50+, Linear with 25+ advisers and signups include smaller local firms such as Easy Switch.

Retain works for all shapes and sizes

 

In Andrews Property Group’s case, since Retain more than 30% of lost customers have reengaged and every customer that has requested a call has progressed to the transaction.

 

Nick Moir, Head of Marketing, Andrews Property Group said:

I don’t have much to say beyond wow! I love it all, the strategy and the content. In fact, I have just passed this over to my team as an example of how things really should be done.

Retain has helped Linear Financial Solutions significantly increase customer engagement and is now helping them win back orphan customers.

David Walton, MD, Linear Financial Solutions commented:

Retain is already making our retention business customer-led. We now know exactly when customers would like to speak and are doing more business in less time. Our advisers love the simplicity and it feels like a solution built for the way they work.

 

Easy switch’s Peter Burke also cited great feedback from his customers about Retain:

We’ve been using Eligible’s tool Retain for several months now. From our experience, we’ve found Retain very easy to use and we’re happy with the progress. As our confidence in the product grows, so does our trust that eligible can look after our retention business. We’re also really happy with the positive feedback from our own clients, especially the more tech savvy ones!

 

Remind me how it works?

Retain uses customer data to track and automatically recontact every existing customer before expiry without the broker having to chase. Say goodbye to voicemails and 100s of chaser emails a year! Every email links customers to a branded web app that looks and sounds like you; tailored to each individual client.

Everything borrowers need to know about their mortgage, with helpful content easy to understand all in one place. At any time, the customer can notify their adviser that they would like to discuss remortgaging.

Brokers can keep track of their expiries in a simple, prioritised list. Retain monitors what clients are doing to ensure that brokers are always contacting their most engaged clients faster improving conversion.

 

Support across the spectrum

In June, TMA Club partnered with Eligible, providing members of the Club access to Retain, the latest in a line of digital enhancements for their brokers. The partnership included an exclusive offer for the first 50 TMA members who sign up to Retain.

Retain features in TMA’s customer retention toolkit and has senior support from Director of Mortgages, David Copland:

Platforms like Retain make retaining customers more efficient and much more hassle-free. By equipping our advisers with the right tools to tackle this, we hope to boost their product transfer and remortgage figures and help them regain time previously spent on administrative tasks, so they can focus on what really matters – providing tailored and holistic advice to their clients.

Pat on the back for Retain sign ups

Co-founder and CEO of Eligible, Rameez Zafar added: 

The volume and level of interest that we’ve had across the market for Retain has been positively overwhelming. We’re excited about the conversations we’re having and what’s to come- watch this space.

 

Want to find out more? Schedule your free demo with the CEO.

Hate to say it, but I told you so

Hate to say it, but I told you so

So, 10 year mortgages are on the rise…

Remember our Let’s speak in 5 years – A shift to 5-year fixes impacts your bottom line blog post?

 

Well, we said that by 2020, there’s a chance you will see a significant drop in the number of potential remortgage customers – due to consumer shift from 2 year to 5+ year fixed rate mortgages.

This week it was reported that 10-year fixed-rate mortgages are becoming more popular.

We told you so

Lenders are jumping onboard the long-term wagon, which now sees a record high of 157 options existing for fixed rate mortgages, according to Moneyfacts.co.uk.

When we look at the numbers, the average rate charged on a 10-year fixed mortgage stands at 3.01 per cent, a fall of 0.09 per cent year-on-year from the 3.10 per cent recorded in August 2018.

 

Are we ready for the change into the decade of debt?

Keeping up with debt

Newcastle building Society launched two of these products just this week, one available at 80 per cent loan-to-value and one at 90 per cent loan-to-value, charging 2.85 per cent and 2.89 per cent respectively. They also added the touch that borrowers are also able to repay their mortgage after five years without penalty- sounds appealing so far.

 

Has Brexit trigged this behavioural change with consumers? Are borrowers now trying to safeguard themselves from market flux? With such a lengthy commitment is this really what we should be advising our customers?

Rachel Springall, finance expert at Moneyfacts.co.uk, said:

A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected. There is a much larger choice of mortgages within the five-year fixed market and these should ideally be considered as an alternative.

 

But that’s just one opinion, right?

 

Bob Steel, mortgage and protection sales coach at First Mortgage, Steel said that he couldn’t “see the appeal of recommending a client to lock into a product with fairly hefty exit penalties” and added:

Whilst the market is moving towards longer term deals to take advantage of low long-term rates, I think the lenders need to make the exit penalties less excessive.  Although we have seen a slight increase in the demand for a 10–year rate since the vote to leave the EU, this is usually for a very specific type of client – i.e. nearing retirement and 10 years or slightly more left on mortgage with absolutely no plans on moving.

Similarly, Nicola Arbon, managing director at Mortgage Hut, indicated a “slight demand” in 10-year options. She also added that she made sure to always advise her clients to “proceed with caution” in case their circumstances changed and they were left with a “hefty” early repayment charge.

This shift potentially verifies the uncertainty that our customers feel and their confidence in the future of the UK property market.

On the other hand, Paul Flavin, managing director of Zing Mortgages, believed it showed “confidence in the money market” that in the short to medium term the economy was going to be “pretty good”.

Are we surprised? Well Norman is…

Surprised by 10 year mortgages

Norman Philips, director of Drake Mortgages, said:

I am surprised that 10-year fixed rates are popular. In the modern world, you have to balance the certainty of a mortgage payment with lack of job security; and then include the knowledge of early repayment charges plus an understanding of the way that underwriting works on portability.

With such long-term mortgages on the horizon there has never been a more important time to think about innovative ways to nurture our customer relationships in order to ensure we Retain and grow business.

Thumbs Up from TMA

Thumbs Up from TMA

We’re proud to announce our new partnership with TMA Club.

We’re working directly with the Club to combat customer retention for brokers across the UK with our solution Retain, by Eligible.

In support of Retain, David Copland, director of mortgages at TMA, said:

With up to 30% of homeowners in the UK deciding not to remortgage with the same broker, there is a clear gap in the market.

We are always looking at ways to enhance our members’ businesses and customer retention is a key aspect of this.

What’s all the fuss about?

Put simply and practically:

Retain contacts clients prior to expiry so brokers are able to keep track of their expiries in a simple, prioritised list.

Retain supports brokers by using customer data to track and automatically recontact existing customers who are due to roll off their current mortgage deal, before lenders get in first

Clients receive an email which links them to a broker-branded web app where they can learn more about their mortgage and are reminded of the value of their broker’s advice.

Ok, so far so good..

So far so good

Copland added:

Platforms like Retain make retaining customers more efficient and much more hassle-free.

By equipping our advisers with the right tools to tackle this, we hope to boost their product transfer and remortgage figures and help them regain time previously spent on administrative tasks, so they can focus on what really matters – providing tailored and holistic advice to their clients.

The automated customer retention tool also monitors client’s activity within the app so brokers are able to contact their most engaged clients.

Clients can notify their adviser at any time that they would like to discuss remortgaging to encourage customer-led retention.

 

If it’s good enough for you, it’s good enough for me.

sold on the product

Rameez Zafar, chief executive at Eligible said:

As one of the UK’s leading mortgage clubs, TMA’s ethos to provide the best possible broker and customer experience, is one we mirror.

Through offering our retention solution to TMA, we will work together to reduce brokers’ workloads, allowing them to focus on doing what they do best – advising customers

We also aim to improve financial literacy for our clients whilst keeping the customer at the heart of the mortgage journey.

In support of the partnership, TMA Club has provided 50 members of the club access to Retain.

Want to partner with us too? Get in touch and we’ll make magic happen.
The FCA’s proposed rules mean more remortgages

The FCA’s proposed rules mean more remortgages

What’s going on?

The FCA’s new consultation paper suggests major changes to their current lending rules and guidance. The FCA didn’t think it was quite right that consumers who had clearly shown that they could make a higher payment, should be prevented from making a lower payment. We agree.

 

If you can dodge a wrench, you can dodge a ball
Patches O’Houlihan, Dodgeball

What does this mean?

The FCA has suggested that a new lender be allowed to carry out a modified affordability assessment if the consumer is eligible. To be eligible, the consumer must have a mortgage, made all their payments and not want to borrow more.

Why should I care?

The proposed changes help consumers pay lower prices for their mortgage. They also help consumers remortgage. Causal Chain.

If they go through, the changes will unlock consumers with inactive lenders and unregulated entities. The FCA estimates that there are 500,000 eligible consumers, who will be notified about being able to move products in-line with the proposed rules.

A better switching process means another 150,000 – 200,000 consumers per year will benefit. An easier remortgage process will help consumer apathy. We know from talking to hundreds of consumers that when it comes to mortgages, even a little easier helps a lot.

We believe that the proposed changes could have a big impact on remortgages. Also, they’re an excellent opportunity for Advisors to revisit customers who could gain from product mobility.

Watch this space…

  • Definition of more affordable could extend to the reversion rate
  • Home movers could benefit from modified affordability
  • Expect a new wave of products with discounted or no arrangement fees
  • Expect longer date fixed rate products (more lenders to introduce 5+ year products)

 

Remind me how this all came about?

After the Financial Crisis, the FCA said “no-more” to poor lending practices. Between 2014 and 2016, the FCA took a long look at what went wrong – releasing tough affordability criteria as part of the Mortgage Market Review (MMR). The new rules were to make sure a consumer didn’t end up getting a product that he (or she!) couldn’t make the payments on.

Seems reasonable…

So, what happened? The FCA’s 2016 Mortgages Market Study discovered a whole load of consumers who couldn’t move to a new product even though they were up-to-date with their payments.

To help these folks out, the FCA said the affordability rules did not apply if a consumer was moving to a new product with their current lender and did not want to borrow more. The FCA also asked Lenders to help these clients move. A voluntary agreement with active Lenders, applying to all consumers, led to a jump in product transfers.

The FCA isn’t sure that this goes far enough. For one, it leaves the problem of consumers with inactive lenders and unregulated entities. But also, the FCA gets that if a consumer is eligible, then there’s no reason why they shouldn’t be able to make a switch.

 

Client retention has to improve

Client retention has to improve

“The following piece about Eligible appeared in Mortgage Introducer on 25th March 2019. Click here to view the original article.”


Over the past two years, Eligible has conducted in-depth research with clients and advisers to understand how technology can enhance the client relationship.

We realised that in a rush to speed up applications, optimise fact finds and create client portals, the retention of the end client has been neglected. A great example of this: advisers talk to their clients once every two years! As a result, the client has mostly forgotten the things they had learned from their adviser.

The client journey is broken – clients remain scared by jargon and lack understanding when it comes to their mortgage.

The financial services sector has created its own barriers to entry with technical language that alienates the very people we want to help. Many clients are anxious about talking to their broker because they feel out of their depth.

Improving the client experience

Our conclusion is that what the industry needs and clients want is relevance in communication. One size does not fit all and for too long, people have acted in this manner and expected results to improve. We must learn to relay complex concepts in simple, relevant and personalised ways to each individual client. The good news is that technology has become more accessible to enable firms to do this.

Our focus is on bringing the idea of nurturing client relationships to the mortgage industry. This is fundamental to creating a lifetime relationship with your clients where you are advising them for 10, 20 – even 30 years!

In our research, it was clear that improving financial literacy for the end client was important for the health and viability of a long-term client relationship. This can only be done by contacting and engaging the client with information that is relevant to them at that point in their life. Once you can communicate effectively with your client, you are best-positioned to be their trusted adviser for life.

How does technology fit into the client relationship?

It allows advisers to turn their existing customer data into personalised journeys to nurture the client relationship and lead that client back to their adviser when it is time to remortgage. We want to make sure that more phone calls and F2F meetings take place between clients and their advisers. Our experience and studies have shown such interactions lead to happier customers and more revenue, and nothing can replace them in either the eyes of the client or the adviser.

Some food for thought – replace the words “big data” with the words “big understanding.” Data allows you to understand your clients better but only if you learn to act on what it teaches us.