Now is the time to be proactive or risk losing your business

After well over a decade of falling interest rates, the inevitable has happened and we now find ourselves in a rising rate environment. The dramatic pace of change to, both the Bank of England Base Rate and to swap rates, was unexpected, but the ultimate impact on clients is something that many in the industry have predicted for some time.

Brokers now have a choice. You can respond to the situation and take a proactive approach with your clients. Or you can risk watching your business wither in the coming years. It isn’t a case of if, but when.

The dramatic spike in mortgage rates has spooked customers. People, who may have never even considered their mortgage rate increasing, are now facing up to paying hundreds of pounds more each month to live in their home. This is alongside their increased cost of living, and barely a day goes by without gloomy headlines of financial hardship.

As brokers, you are well placed to help people, but you can’t just rely on them coming to you. Lenders are stepping up direct contact with customers on product transfers and those customers, with rate rises fresh in their mind are now considering longer term fixed rates of five years and more.

A lot can change in five years. People get married, divorced, have babies and change the course of their life, which often requires access to finance. Many of your clients’ lives have probably changed beyond description since you last arranged their mortgage. So, don’t just wait for renewal before contacting them again. Taking this approach could result in you sleep walking towards a drop off in your client base.

It's vital that you start the conversation early, and that you have more to offer than a straightforward remortgage.

With rates rising and more clients opting to fix for longer, access to second charge lending becomes a much more prominent consideration for many homeowners who want to finance their life plans, or even just consolidate their debts and streamline their monthly outgoings.

The second charge mortgage market continues to be competitive, with a range of options, including a growing number of variable rate products. As we move into 2023, the market is only going to become more vibrant, with more opportunities for brokers to help their clients.

It’s the responsibility of a good broker to be proactive with their clients and open up a conversation about their plans and finance needs. However, it’s not the responsibility of a good broker to be an expert in every area of the market – that would be impossible. By partnering with a specialist distributor, you can access their expertise, which means you can provide your clients with a more complete set of potential solutions.

Now is the time to be proactive or risk losing your business, and partnering with a specialist distributor like Brightstar can give you the tools you need to deliver the best customer outcomes.