These are exciting moments for the market. Change is happening rapidly, driven by price competition and rapid innovation in various parts of the industry.
The main force behind this shift is fierce price competition among the six major lenders. As they fight on profit margins, smaller lenders are introducing new ideas, launching new products and exploring more specialized market areas.
Take the new delayed start product, which allows first-time home buyers to enter a new home without any mortgage loans within the first three months.
Then there is the return of the recent No-Deposit 100% LTV option, which has been picked up by several smaller lenders. Iron enhances iron, and competition continues to drive the market forward.
But innovation comes not only from lenders. Technology providers and AI companies are also helping to drive the industry forward, providing smarter, faster, and faster solutions across the board.
In today’s environment, this is not the cheapest win, but the best deal. That’s all the consultant does.
The mortgage market is expected to reach £51.4 billion this year, and access alone won’t drive it. It will be shaped by brokers who add value and bring tailored insights and experiences to each conversation. Tools can provide powerful data on customer behavior and preferences, but it is the consultant’s emotional intelligence and professional judgment that brings them together.
Yes, consumers know where to find large lenders. But they need someone who can show them something relevant, maybe and wise.
Momentum construction
April was the second highest loan month in our record at the mortgage club, reaching £10.8 billion, and it was the highest in October 2022 only during the stamp duty holiday. That (the number for April) is no coincidence. That’s what agents do best: show up, step up and make things happen.
We see new products entering the market, many of which have tailor-made affordability options designed to meet a wider range of customer needs. Early signs from the Bank of England suggest that affordability can be further improved, a welcome sign for clients preparing to re-engage in a market full of attractive opportunities.
Artificial intelligence and automation may be simplifying management tasks, but the value of consultants has never been more critical. Customers are not only looking for price, but also for guarantees, clarity and trustworthy guides that they understand the big picture.
The market is growing rapidly, but we cannot afford to be passive or complacent. Although the recent FCA consultation is designed to make access easier and more simplified, we must make sure it does not ignore the key role the consultant plays in delivering better, more tailored results to consumers.
Now it’s time to shout it out loud and clear. We need to see, be proud and proactive in showing the real difference we make every day. Think of customers who are ready to press the button and move forward with unsuitable options until the recommendations change the results. Record their testimony. Store them. And share these examples with anyone you meet.
For the protection case, this is the same thing. I can think of many times that simple conversations lead to smarter cover, better structure and long-term family peace of mind. Consultants can articulate the best solutions based on the needs and stages of life.
The suggestion works, and the data proves this. But it depends on our constant reminder of the industry why it is important. There is a reason why brokers lead the market. Let’s make sure we keep it this way.
Kevin Roberts is L&G managing director mortgage service
