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Brokers - what are the biggest drivers in your recommendations at the moment?

Journalist: John Fitzsimons, Freelance

ended 27. June 2023

Morning brokers

Would love to get your take on what is going into picking out individual mortgage products to recommend at the moment.

Obviously price is always important, but is that the priority compared with lenders who you trust will still have that product on offer by the time you can get an application in?

Are there other elements, like service and speed, that have become more or less important during the recent upheaval?

Any and all thoughts on how that decision-making process has been impacted (or not) by the current market would be very welcome!

6 responses from the Newspage community

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Jamie Elvin
Director at Strive Mortgages
Lenders who offer mortgages over longer terms or until older ages are popular at present. While it's not ideal to take a mortgage over a longer term, it's potentially better than defaulting or losing your home. When reviewing your existing mortgage, some existing customer product transfer deals with certain lenders are far more competitive than new customer deals. They also save time compared to the remortgage process. Some clients are securing deals with both their existing lender and a new lender, so they have two options to consider until they are due to complete.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Recommending mortgage products is a bit like a 75% off One Day Flash Sale at TK Maxx. It's busy, it's crowded, and chances are they don't have the top in your size as someone has already taken it. Mortgage advice and recommendations should be and will continue to be based on individual clients' circumstances, eligibility and requirements, to ensure the best outcomes, but over recent weeks sourcing suitable products is a bit like a game of Hungry Horace. Hopefully the coming months will be more settled, more importantly for clients, with lenders able to price mortgage products with more certainty, and longevity, which will also stabilise the advice and process times.
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Bob Singh
Founder at Chess Mortgages
The age-old adage of "Know Your Client" should play a pivotal role in any recommendation given by an adviser. Holistic advice consists of taking into account the clients circumstances, their demands and needs and then matching those to a provider who has the most suitable product and product features who can deliver it in the desired timescale. In time-critical deals, e.g. auction purchases or sealed bid scenarios, speed of processing take greater precedence over rate. The cost of a lost opportunity can be far greater than a few bips on a rate. Above all, it's the confidence in the underwriting of the deal. The knowledge it's the right lender for the deal is key. Just like a surgeon knows where to make the incision, a broker knows which lender will deliver on the deal.
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Elliott Culley
Director at Switch Mortgage Finance
Some clients are considering extending their term in the short term, so lenders offering longer terms are more popular. Clients are concentrating on their monthly payments and looking to reduce the increase as much as possible. The intention is to then reduce the term in a couple years' time, when rates are expected to reduce again according to forecasts. Discount variables are seeing some popularity again now that fixed rates have become more expensive. Clients who have a little bit more disposable income are considering this option and are looking to benefit from a lower rate now with a risk of the rate rising in the future.
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Graham Cox
Director at Bridging Hub
Extended terms up to age 75 are becoming more common, simply for affordability. It means paying more interest overall, but in the short term, it lowers the monthly repayment. It's not ideal, but the borrower can always reduce the term in a few years or make overpayments if circumstances allow.
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Joe Stallard
Director and Advisor at House and Holiday Home Mortgages
Rates are not the only consideration. The main driving force of our recommendation is the person in front of us.
We ask questions, just as we always have, to discover what motivates a person. How long do they want to stay in the property? What are their attitudes towards taking risk? And what about costs, future expectations? How do they feel about risk? Some people are skydivers, and others prefer a nice walk on a familiar route… financially speaking. Listening to what they want, what they need, and who they are is as much a part of what we do as it’s always been. A person has personal circumstances, a vision, a past, a future… they might also have a specific lender preference or want a certain type of lender service level. Now, as always, we give advice based on an eagle’s view of the customer, as well as the current context.