Crucial to learn lessons from upheaval of 2022

Anyone hoping to enjoy a bit of respite from the difficulties of the pandemic period will have been disappointed by 2022.

Far from a return to life as normal, if anything the last 12 months have been filled with even more upheaval and uncertainty than the years which preceded it. Downing Street might as well have installed a rotating door given the way we have gone through Prime Ministers - and Chancellors for that matter - and that tumult at the top of government has had a real impact on the state of the property market.

Yet there are always lessons to be learned from periods of difficulty, which can stand us all in good stead for the years ahead.

Time is of the essence

The fallout from the mini-Budget saw products withdrawn and repriced incredibly quickly, with brokers working around the clock to try to secure deals for their clients before they disappeared.

This wasn’t just an issue for those trying to get a purchase over the line, but also those hoping to remortgage.

It was a useful reminder of just how important speed is when it comes to refinancing, not only in terms of the client selecting the right product, but getting that remortgage completed swiftly too. Clients want to be able to move to their new rate in a timely manner, in order to avoid any payment shock that might result from dropping onto the lender’s standard variable rate.

It’s an area that we have focused on at Smoove with the development of our Rapid Remortgage service, helping eligible clients complete in a similar timeframe to what you see from product transfers. That opens up more options for clients facing a tight deadline and who do not want to be limited to remaining with their current lender.

Communication is key

One of the big complaints from brokers following the mini-Budget chaos centred on communication. All too often they felt out of the loop, not being notified of product changes and withdrawals until it was virtually too late.

The property market relies on quality lines of communication, on openness from everyone involved. Not only does that result in a better experience for the client, it also helps all parties work more efficiently. Without that communication, it’s much too easy for unnecessary delays to occur, making the process drag on. Our studies have found that the average completion time has risen by almost a quarter since 2019, to nearly five months.

In the worst cases this leads to the deal falling through completely.

The process of buying or selling a home already takes far too long. If we are to improve that, and deliver greater satisfaction to our clients, then communication has to get better.

Expertise is worth its weight in gold

The mortgage market has never been less vanilla. There is far more complexity involved in all sorts of cases today, from the borrower’s income status and repayment history to the structures involved in a purchase, such as the growth in limited company buy to let.

Even the properties being borrowed against are more varied, with investors increasingly likely to want to add houses in multiple occupancy (HMOs) and multi-unit freehold blocks (MUFB) to their portfolios.

The rise in variety and complexity has made brokers even more essential for borrowers. Where once those borrowers might have been confident in arranging their mortgage alone, today brokers are little short of essential.

Expertise is not just crucial when it comes to arranging the mortgage, but in delivering on the rest of the process too. We have heard from plenty of brokers this year about their frustrations when dealing with conveyancers who perhaps only handle a case or two each year that is anything out of the ordinary.

That lack of experience, for example with Help to Buy purchases or limited company deals, can lead to a frustratingly slow process. Yet by working with specialists, who understand the intricacies and idiosyncrasies of particular types of deals, brokers and borrowers can enjoy a slicker and faster experience.

I’m not sure many of us would want to relive 2022, particularly when it was at its most manic, but by making the most of the lessons learned over the last 12 months, we can ensure that the industry delivers for our customers.