How to work best with a mortgage broker

Having worked as a mortgage broker for many years, I have witnessed many successful agent/broker partnerships, yet some in the sector are not maximising the opportunities offered by such an alliance, despite the clear benefits. So how can the partnership can work beautifully for both sides?

The estate agent’s key priority is ensuring that they meet their vendor’s needs, but secondly, to fulfil a commitment to managing the buying process for the purchaser. Many eager first time buyers may be unaware of what they can afford, the intricacies of the mortgage and buying process, they require guidance from a knowledgeable third party to meet the appropriate timeframes for purchasing their home.

It is therefore, vital that if the agent is 
to adequately represent the vendor and secure a purchase at a desirable price and
 in a timely fashion, that they also understand the prospective buyer’s situation. They need to know that the viewer has the financial means to purchase it and is in a position 
to progress the sale. Increasingly, we are coming across agents who ask for an ‘agreement-in-principle,’ verifying the customer’s credit status from the bank, but unfortunately it is rarely so simple; in most instances being 100 per cent confident of 
a buyer’s financial circumstances is far more complicated.

MAKING IT WORK

In my experience, what works best is if the agent can forge a formal partnership with
 a professional adviser who can respect 
the client’s desire to keep personal details confidential, but equally can offer assurance to progress and recommend the buyer to his vendor. Furthermore, the agent wants to be sure that the buying process will be effectively managed, and that the buyer can secure an adequate mortgage, based on their circumstances. In an ideal world, the agent wants a valuation booked in quickly and a mortgage offer out easily. Fundamentally, the agent requires clear communication lines, where the entire process is facilitated professionally and smoothly.

Where the competition for homes is strong, excellent service is crucial to get the sale through

THE RISE OF THE BROKER

Brokers now manage 80 per cent of the mortgage business, as direct sales forces are left behind; a result of the Mortgage Market Review and a requirement for all advisers to have professional qualifications. Non- advised sales, especially in the wake of PPI are old news. Clients want impartial advice from someone with a comprehensive, objective view of the entire market, rather than be confined by products from just one lender. Transparency is key. Clients have turned away from banks because of the poor service that they offer. Without an irate broker fighting their case, they are unlikely to secure the best deal.

This is particularly relevant in London, where competition for properties is greater – excellent service is crucial. We see dozens of instances where, for example, a mortgage application is lost in a bank’s system and quoted timescales cannot be met as a result. At its best, this delays the process, at worst, the sale falls through.

The estate agent/mortgage broker relationship is often tenuous. The agent seemingly mistrusts the adviser based in his or her office to provide professional advice to the clients. We regularly hear negative feedback that in-house advisers are not market-savvy or able communicate with the professional client; the agent does not want to jeopardise their reputation by recommending them.

It’s silly in a way, as both broker and agent are motivated to represent the positivity in the market and given the right relationship, it can work really well. Mortgage advice, like any other advice needs to be dealt with professionally and imparted well.

A good adviser can swiftly match an appropriate lender with a client and can predict what paperwork will be required to ensure a quick approval, a fast valuation, offer, exchange and completion.

JOB DONE

If an agent feels confident in his adviser’s abilities, it adds value to the working relationship. Knowing they can get the job done properly can only benefit both.

By recommending a broker, an agent can build client confidence; but impartiality is vital. Customers are fearful of using in-house advisers, under the impression this may jeopardise the deal itself, but by demonstrating independence, the broker can convey that there is no conflict of interest.

House transactions and a long-term workable financial relationship with a mortgage adviser are two separate things. Yet, if confidence flows both ways, the property purchase should be a smooth one, and lead to a lucrative future.

Oliver Whitehead, Oportfolio
www.oportfolio.co.uk