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Augustitis impacts broker activity and lead flow but many go on front foot

Journalist: Newspage News Desk, Freelance

ended 16. August 2023

August is normally a quiet month for lead generation and activity in the mortgage industry and this year has proved no different for most brokers. But marketing experts and brokers alike agree it's an opportunity to build for the rest of the year.

Alex Curtis, founder of Peterborough-based The Lead Engine, which works exclusively with brokers, said it's a mixed bag: “We have a few broker clients with their Google Ad campaigns suffering a bit of Augustitis, while some are running well. Remos are strong whereas some specialist advice campaigns have activity but less intent. Last year was actually very busy for lead flow but this year, as soon as the school holidays started, we have seen a bit of a drop-off."

Mark Valentine, managing director of Shrewsbury-based MV Mortgages, confirmed the trend: “August is traditionally quiet and has been for the seven years I have been a broker, and I think it always will be. People are much more interested in jetting off around the world and holidaying in Cornwall than they are perusing damp 2-bed semi's for their next portfolio property."

However, Valentine is optimistic about the fourth quarter: "I expect the first couple of weeks in September to be quiet, but once confidence flows back through the market then I think October and November will take off. A lot depends on Wednesday's inflation data.”

Joe Stallard, director of Stroud-based House & Holiday Home Mortgages, was also upbeat about activity levels in the months ahead: “August business for us is slightly down year on year, after a flat July. We're expecting a natural pick-up as the school holidays end and are hopeful for strong September and October activity.”

Also acknowledging that "August does tend to be slightly quieter”, Austyn Johnson, founder at Colchester-based Mortgages for Actors, says he goes on the front foot: “To drum up business, we send our introducers out some marketing material and see if they will pass it on to their clients.”

Chris Targett, director of Redditch-based Social for Brokers, urged brokers to be proactive during the quiet month of August: "As we all know, August is a month when clients are sipping Pimms as opposed to sorting mortgages, so it's understandable that it's quiet during the Summer Holiday period. Our clients are using this time to enhance relationships with local introducers that will benefit them in the future, or working on content that will help them generate more leads in the run-up to Christmas. It's also a great time to be tweaking your online offering, optimising your websites, social media channels and curating a plan for your marketing efforts to help drive business in the next quarter. You'll thank yourself when it starts to get busy again."

Meanwhile, Sabrina Hall of Lichfield-based Kind Financial Services, said she's been slightly busier than usual: “This year it's not been as quiet as most people are still concerned about rising interest rates and therefore seeking advice. I'm mostly talking to clients about remortgages and income protection, however, as house purchases seem to have slowed down.”

For James Bull of Huddersfield-based JB Mortgages, a solid client bank can often come to the rescue during the quieter month of August: “As an established mortgage broker business, this dip is fortunately offset by our client bank. We always have a number of existing clients to contact every month who need to review their fixed rates that are due to end.”

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10 responses from the Newspage community

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Alex Curtis
Founder at The Lead Engine
We have a few broker clients with their Google Ad campaigns suffering a bit of Augustitis, while some are running well. Remos are strong whereas some specialist advice campaigns have activity but less intent. Last year was actually very busy for lead flow but this year, as soon as the school holidays started, we have seen a bit of a drop-off. September is always busy, and we are expecting a strong Q4 then into the normal dip for Christmas. We'll often reduce ad budgets in August to then spend more in September to account for the demand levels.
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Mark Valentine
Managing Director and Broker at MV Mortgages
August is traditionally quiet and has been for the seven years I have been a broker, and I think it always will be. People are much more interested in jetting off around the world and holidaying in Cornwall than they are perusing damp 2-bed semi's for their next portfolio property. With mortgage rates gradually dropping over the past two weeks, I think we will see the return of confidence in the market. I expect the first couple of weeks in September to be quiet, but once the confidence flows back through the market then I think October and November will take off. A lot depends on Wednesday's inflation data.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Our lead numbers (from our estate agent introducers and our website) are 22% up so far this August on the same first 2 weeks of August last year, and this does not include our growing back book of remortgage business. The August lead volumes also are consistent with June and July so far, so we have not seen or felt any sign of a summer holiday slowdown. Maybe internet-bought leads and Google ads may be less effective at this time from the more casual enquirer, but the more niche and specific campaigns have not been impacted in our experience.
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Austyn Johnson
Founder at Mortgages For Actors
August does tend to be slightly quieter, but not a lot though. Yes, we've seen a drop-off in enquiries, but again only slightly. To drum up business, we send our introducers out some marketing material and see if they will pass it on to their clients. We're expecting things to get busier from September onwards but the festive drop in service at lenders always annoys me, so I'll be doing more to keep that flowing.
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Sabrina Hall
Mortgage Adviser & Protection Adviser at Kind Financial Services
I usually see a drop off in August and to be honest with two kids at home on summer holiday it's sometimes a relief as it helps with the childcare juggle. However, this year it's not been as quiet as most people are still concerned about rising interest rates and therefore seeking advice. I'm mostly talking to clients about remortgages and income protection, however, as house purchases seem to have slowed down.
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James Bull
Mortgage Broker at JB Mortgages
There is no doubt that the property industry in general has always been very seasonal. During the school holidays in the summer period we would expect lead volumes to dip slightly. As an established mortgage broker business, this dip is fortunately offset by our client bank. We always have a number of existing clients to contact every month who need to review their fixed rates that are due to end. We would expect September to November to be a very busy period when the kids return to school, and people move their attention to moving house and completing before Xmas.
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Chris Targett
Director at Social For Brokers
As we all know, August is a month when clients are sipping Pimms as opposed to sorting mortgages, so it's understandable that it's quiet during the Summer Holiday period. Our clients are using this time to enhance relationships with local introducers that will benefit them in the future, or working on content that will help them generate more leads in the run-up to Christmas. It's also a great time to be tweaking your online offering, optimising your websites, social media channels and curating a plan for your marketing efforts to help drive business in the next quarter. You'll thank yourself when it starts to get busy again.
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Chris Barry
Director at Thomas Legal
Over the past two months, we have seen many clients taking a "wait and see approach" whilst parts of the press speculated on whether a sharp interest rate decrease and/or house price crash was on the cards shortly.

We believe the announcement of July's inflation data makes another 25bpt rate rise inevitable, and with that a small rise to short-term lending but likely limited impact to medium-term lending.

This provides short-term stability and although it isn't the news consumers will want, at least those looking to buy a property can now make a decision based on the new normal of higher rates for longer.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
The mortgage market does, and always will, go in cycles. Sometimes you are rushing around like a caffeine powered Cheetah trying to place mortgages as quickly as they are coming through the door, at other times the mortgages fall back and many brokers will then have the time to revisit those mortgage clients and have more detailed and in-depth conversations about their protection needs. This is often reflected in industry stats that show as mortgage applications increase, protection application decrease and vice-versa.
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Joe Stallard
Director and Advisor at House and Holiday Home Mortgages
August is typically one of the quieter months for enquiries in the world of mortgages. It's natural that, with the kids off school and family holidays, people have less time for things like moving and mortgages. New clients will continue to come in steadily, but there's still plenty of existing clients to help, whether that's with trying to keep their chain moving if they're purchasing, or with their remortgage if their existing product is due to expire. Currently, August business for us is slightly down year on year, after a flat July. We're expecting a natural pick-up as the school holidays end and are hopeful for strong September and October activity.