Poll
Can master brokers cope with a surge in enquiries?
In a blog last week, Jon Sturgess, head of sales at Masthaven Secured Loans, warned that it was increasingly important for master brokers to ensure that they have the resources and knowledge needed to cope with an uplift in enquiries.
However, Martin Stewart, director of master broker London Money Loans, has suggested that having too many staff may impact a business’s ability to deliver the best customer service.
“…Our preferred approach is to only deal with a set number of directly authorised introducers and would never take on extra brokers if we couldn’t guarantee them or their clients a quality service,” Martin explained.
“Balancing the resource against demand is always a difficult one and very few get it right.
“I think small is beautiful and we prefer quality and profit over volume and turnover.”
‘The demand is definitely there’
In August, the Bank of England cut interest rates to 0.25% amid widespread financial uncertainty in the wake of the EU referendum result.
In turn, many base rate tracker mortgage consumers saw their monthly interest payments fall.
As a result, some brokers believed that there may be an increase in second charge enquiries as customers looked to hold on to their current rates rather than remortgage.
“It’s hard to tell how the vote has impacted as it landed just prior to holiday season where enquiries were down across the board,” Martin admitted.
“However, with the grown-ups now back at work we have seen a record month in September and expect another record month again in October, so the demand is definitely there.”
Mortgage Credit Directive
London Money Loans is not the only broker to have experienced second charge growth.
Earlier this year, Norton Broker Services announced that it had broken its record for income in July.
Meanwhile, in September, master broker V Loans reported that its average second charge loan size had increased by 83%.
And Brexit was not the only factor behind this growth.
Master brokers have reported that the implementation of the Mortgage Credit Directive had increased their application to completion conversion rate.
Nevertheless, despite his insistence that quantity could jeopardise quality, Martin revealed that he had taken steps to prepare for the rise of second charges.
“We also always carry one more member of staff than needed just in case of a surge in enquiries or any unforeseen circumstances.”
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