New challenges, new solutions

Friday 22nd January 2010

By Phil Whitehouse, head of mortgage club, The Mortgage Alliance (TMA)

The beginning of a new year is always a time for some degree of reflection on personal and business matters.

Mapping out both business plans and budgets for the year can be tricky tasks at the best of times but when faced with ongoing economic challenges they are especially tough. It is all well and good establishing a plan but there are times when a firm has to be fleet of foot and adapt and evolve as necessary. (In many ways I’m fortunate that I’m not trying to drive a super tanker through the waters of the mortgage market)

As a mortgage club that has continually adapted to the market conditions, it has been important to keep overheads at a minimum which enables us to pass on as much benefit to our members as possible. We can be more flexible in our approach and be reactive to market movements or opportunities. Of course any successful firm must be well structured with sufficient financial backing to succeed and necessity has dictated that businesses big and small have all had to look at themselves in terms of efficiency. This has often meant some organisations have streamlined their business to become more efficient through the unfortunate shedding of jobs or, in some rarer cases, investing in technology to ensure customers/clients are getting the best support possible.

At TMA we have made the decision to totally revamp our website to try and open up more potential opportunities for our members. This is a significant investment for us both in terms of time and money. The ultimate aim is to be able to better recognise and reward our members by being able to get closer to them and being in a better position to offer them easier access to a wider range of opportunities. It could be argued it is a bold step to take this initiative amidst current market conditions but it's clear that brokers need all the support they can get at the moment and with positive signs slowly but surely emerging we are looking to the future with increased confidence.

The intermediary distribution channel has had to change dramatically over the past couple of years and this evolutionary process shows no sign of stopping. Some areas have suffered a little more than most. The packaging market having unfortunately endured a large number of casualties and we continue to hear of high profile networks struggling to cope with financial burdens and payment of broker fees. Indeed the term mortgage club is no longer entirely relevant to the modern marketplace and intermediaries have had to look to other fields and sectors to remain in business and prosper.

But it is important to remember our core business and fundamentally this remains writing mortgage business. Whilst this has obviously been a struggle with product numbers dwindling in various sectors, according to recent research from moneysupermarket.com, there are now 2,500 mortgage products available. This is the first time this level has been breached since 11 May 2009 and is the third consecutive month product numbers have increased.

This may not be a groundbreaking figure but it is certainly a start. It also helps illustrate just how important it is to stay close to new, existing and returning lenders to help boost mortgage business as well as the bolt on ancillary product offerings that are also a must in the current market.

Speaking to our members has led TMA to realise the significance of cementing these key relations along with implementing technological enhancements, which will ultimately result in a stronger support structure.
We realise the value of getting closer to our customers in order to ensure we are providing the right offerings and service. The market has undoubtedly shrunk and it is up to distributors to carry on upping their game in order to best serve the needs of their customers. Ultimately those who will flourish amidst these challenging conditions will be the ones that provide answers to the questions being asked of them and then to deliver on key promises.

Phil Whitehouse is head of network, The Mortgage Alliance. The Mortgage Alliance has a loyal data base of 7,000 Directly Authorised mortgage intermediaries and as with most firms operating within the mortgage market it is having to overcome a number of obstacles in order to help members write business. He previously worked as a senior manager for Pink Home Loans and spent 25 years with Halifax/Leeds Permanent Building Society running various high street branches. Phil enjoys golf but says: “No matter what I do I cannot get any better and I beat myself up crazily about something that on the face of it is such a simple game."