With mortgage business levels predicted to fall by around 20% and the value of the of the market set to fall by between £50-£100bn due to the fallout from the recent credit crunch, advisers should fully exploit all opportunities to recoup a potential drop in income.
I would urge advisers to look for alternative revenue streams such as conveyancing referrals to supplement their income. An adviser can earn up to £200 commission for each purchase and sale referral, for no extra work or financial outlay, which can add up to several thousand pounds of extra income per month.
The role of the mortgage adviser has traditionally been limited to arranging the loan and associated insurances to enable the client to purchase a property.
However, there is an opportunity for advisers to extend the range of services they provide to the customer.
One area where the intermediary can make a welcome impact is in the conveyancing process. But be sure to choose a conveyancing partner wisely.
Most people currently employ a solicitor or a licensed conveyancer to take care of the paperwork and legalities. This results in a long wait for the client.
The process usually takes around eight weeks, often more. And it can be expensive – anything from around £400 plus VAT up to over £4000 for very expensive propeties.
Think how much better it would be for the client if their adviser could slash waiting time from the usual eight weeks or so.
That’s where the new generation of online conveyancers come in. Having said that, there are many providers out there promising an online service, but very few that actually provide the whole service electronically.
The key is to make the entire file electronic, so the client is able to access it on the internet.
A true online system can deliver the purchase of a property by a fully qualified solicitor on average 41% quicker than a traditional conveyancer, (it takes only 34 days to exchange and only 43 days to completion).
The big advantage is that not only is the client more informed and they therefore feel more in control and empowered, but it also speeds things up.
A mortgage adviser introducing such a system to the client will get the praise for speeding up the process and in a win-win situation; they also make commission on the deal.
Duncan Samuel is managing director at Convex Conveyancing
The views expressed in this article of those of its author and do not necessarily represent those of IFAonline or any other Incisive Media affiliated organisation.IFAonline
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