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The Challenges of Today’s Adviser | Expert Mortgage Brokers

The Challenges of Today's Adviser

The Challenges of Today’s Adviser


In the dynamic mortgage market landscape, advisers face intensified challenges. The prevailing cost-of-living crisis and rising interest rates amplify these issues. These challenges impact the affordability of mortgages and the quality of service provided to customers.

Consequently, the pressure on mortgage advisers has increased significantly. Navigating this complex terrain has become more demanding.

Rate Race and Error-Prone Applications

Today’s advisers face a relentless pace of rate updates. The urgency to submit applications before the rate cutoff time amplifies the likelihood of errors. This rush makes advisers more susceptible to oversights, which can have serious implications.

For instance, a minor mistake in product selection can lead to errors in loan-to-value calculations. This issue was highlighted in a recent case. Due to lender-related delays, the mistake only came to light after several weeks. Consequently, the client, who could have secured a lower interest rate, ended up with a less favourable deal.

Such errors underline the importance of attention to detail. However, the pressure to act quickly often compromises the accuracy of advisers’ work. This situation demands better support systems to help advisers manage these challenges effectively.

Navigating Criteria and Service Challenges

The challenge of today’s adviser is significant. Lenders often withdraw rates abruptly, with little notice. This increases the risk of application errors. Therefore, meticulous verification of criteria elements before submission is crucial. Fortunately, tools like SmartrCriteria and KnowledgeBank offer valuable resources. These tools help cross-reference information with lenders’ criteria.

Additionally, the escalating rate environment strains lender service levels. Many lenders now experience extended turnaround times. Delays worsen when underwriters ask questions incrementally. This causes applications to stagnate. Such delays frustrate advisers and clients alike. Clients may view it as a service deficiency on the adviser’s part.

Both advisers and clients need efficient processes. It’s important to use available resources effectively. Staying informed can help mitigate some challenges. Regular updates and cross-referencing can reduce errors. This proactive approach can enhance service quality. It also helps maintain client satisfaction. By managing these challenges, advisers can improve their service.

The Role of Adviser Packaging and Underwriting Guides

The adviser’s role involves “packaging” cases for underwriters. Advisers and underwriters face different challenges. Underwriters, lacking direct client interaction, often miss the intricacies of financial situations. Therefore, advisers must bridge this gap.

Adding life to applications is essential. Advisers should use soft facts and explanations. These can highlight details that underwriters might miss. For example, using the notes section in applications can provide extra insights.

Moreover, familiarity with lender underwriting guides is crucial. This knowledge can clarify document requirements, making the process smoother and faster.

Thus, the adviser’s job involves detailed and thoughtful application preparation. This ensures that the underwriter fully understands the client’s financial situation. By doing so, advisers can significantly improve the chances of application approval.

Addressing Affordability Challenges

The challenge for today’s adviser is the rising interest rates, which pressure affordability in residential and buy-to-let markets. Advisers must explore alternative avenues when loan amounts fall short. Understanding lenders offering Joint Borrower Sole Proprietor (JBSP) mortgages can be invaluable in the residential sphere.

JBSP mortgages offer tax benefits by considering a family member’s income for affordability without their name on the property registry. The challenges for today’s adviser also extend to Buy-to-Let (BTL). Investors might consider purchasing through a Limited Company to enhance rental calculations. Additionally, they can boost yields through property conversions like HMOs or holiday lets.

Under new rules, existing BTL properties with expiring five-year fixed-rate deals may pose affordability challenges. Rate switches and lender considerations will be essential for borrowers in this scenario.

Consumer Duty and the Adviser’s Role

The introduction of the Consumer Duty paper challenges advisers, increasing their responsibilities. They must consider the implications on their businesses and adapt accordingly.

Fortunately, support and educational resources are available through various market channels. The Society of Mortgage Professionals also provides resources, enabling advisers to invest in their development. These efforts will benefit both advisers and their customers. They will help navigate the complex challenges of today’s mortgage market.