Advisers must offer better value than price comparators: MAE London

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“Develop a contact management strategy, nurture your prospects and existing customers with useful information.”

She said consumers are increasingly using digital tools to research their mortgage options, including requesting a decision in principle to determine how much they can borrow.

In a seminar titled “One Click: How Consumers Are Using Digital Tools for Mortgage Research”, Jodie explored where consumers look for information during their research and how the digital age will change lending. mortgages and advice.

In November 2021, L&G undertook research of over 1,000 consumers who had taken out a mortgage in the past four years, the vast majority in the past two years. Participants were a mix of first-time home buyers (34%), movers (25%) and mortgagers (41%) and figures show that 40% used a mortgage broker, with the rest going direct to a lender.

When asked about finding a mortgage, 97% did at least some research. 43% researched how much they could borrow, 43% compared different mortgage products, 39% wanted an overview of current rates and 41% wanted to understand whether to lock in their rate.

Asked where they got the information, Jodie said it was “no surprise” that online played a huge part. An equal number (35%) used a mortgage advisor and an online comparison site, while 31% visited an independent website and 30% visited a financial provider’s website.

Consumers spent an average of three weeks researching their mortgage, with three-quarters saying it was easy to find the information they wanted. Early buyers, however, found it less easy, feeling overwhelmed by unfamiliar processes and terminology.

Most consumers obtained a principle decision before the request, with two-thirds requesting two or more. However, only 44% used a mortgage broker to obtain their DiP.

Additionally, Jodie said borrowers use DiPs for reasons why they should consult a broker. 32% wanted to know which provider would lend the most, while 35% said they needed proof for a real estate agent. 39% said they wanted to verify that the mortgage provider would lend to them and 55% wanted to estimate how much they could borrow.

The research also revealed that online application is becoming the norm for DiPs. 47% requested their DiP online and 72% received it within three days. 36% received their DiP by phone, 31% in person at a branch and 19% by email. Online DiPs increased to 54% for consumers who applied directly.

Borrowers are also using other digital tools in their mortgage journey, such as online calculators, digital document signing tools, and portals that allow forms to be filled out and documents uploaded.

Digital tools are used by 84% of respondents and 9 out of 10 are satisfied with their use.

Regarding how brokers can take advantage of technology, Jodie said: “Use a CRM not just to manage your leads and customer data, but to provide a more digital experience. Use the tools they often offer to manage online documents and keep your customers updated on progress.

“Develop a contact management strategy, nurture your prospects and existing clients with useful information. Use mortgage research tools to quickly deliver this expertise and the right level of information to your clients at the request stage.”

Jodie added that advisers should make their website a “one stop shop”. When L&G asked consumers why they chose a broker, 40% said brokers had the whole market, 38% said they could quickly tell me which offers/providers were right for me,” and 30 % cited the choice of the best offers on the market.

She concluded, “You should be able to give [your clients] these regular market communications to reassure them that they don’t have to go elsewhere and use online tools to find this information. Don’t let your customers be part of the 35% who turn to price comparison sites. »

For more information on the Mortgage Adviser Event and the next Manchester date, visit https://mortgageadviserevent.co.uk.

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