We understand that gathering and developing the knowledge to become a successful mortgage broker can feel overwhelming at first. The Growth Series is a free resource to share with newer members of the team that will help them on their journey.
Let's begin by unpacking the basics:
You'll act as a trusted guide, liaising between lenders, valuers and your clients. Your expertise and ability to explain and manage the process effectively will ensure a smooth and efficient mortgage application to offer process.
Learn more: The hidden value of broker's advice
Learn more: The value of knowledge and advice
It goes without saying that helping clients understand which mortgage best suits their needs is a fundamental part of the job. You can download the comprehensive guide to different mortgage types which will help you confidently explain the pros and cons of each option to your clients.
Lenders meticulously assess mortgage applications before offering approval. We've created The Ultimate Guide to Selling Mortgages which delves deeper into these criteria, empowering you to confidently advise your clients.
There's an ongoing discussion about lenders being more transparent with pricing and communication. As a broker, transparency is equally important and will help build trust and win repeat business. You can be a champion for your clients in this regard:
Learn more: How mortgage products are funded
Learn more: The state of play in the mortgage market
Many brokers encounter clients with more complex financial arrangements, such as the self-employed or business owners. Understanding company accounts and credit reports is essential to effectively serve these clients.
Securing a mortgage can often present unique challenges for the self-employed, so knowing what to look for and what questions to ask the client is essential. The main difference is that the self-employed need to prove their income, with most lenders wanting to see at least two years worth of accounts and tax returns.
The more proof the better; having an accountant, a track record of regular work, a sizable deposit and a good credit history will all help in securing a loan. Learn more about supporting the self-employed in getting a mortgage here which will help equip you with the knowledge and tools to confidently guide these clients.
Buy-to-let mortgages are specifically designed for those purchasing property as an investment rather than a residence. Lenders typically look at the potential rental income to assess affordability, often requiring it to exceed mortgage payments by a certain percentage. They also consider the borrower’s broader financial situation, including their credit history and existing debts. Understanding the intricacies of buy-to-let lending will enable you to better serve clients looking to expand their property portfolios.
Clients with past credit issues may find obtaining a mortgage more challenging, but not impossible. Lenders will scrutinise their credit reports to evaluate risk. A strong and consistent profit and loss statement can demonstrate improved financial management and stability, helping to offset previous credit concerns. Advising clients on how to improve their credit profiles and understanding which lenders are more flexible with credit issues can significantly aid in securing a mortgage for these clients.
High net worth clients often have complex income streams and substantial assets. Lenders will look at a comprehensive picture of their financial situation, including diversified investments and substantial assets to offset potential risks from fluctuating income streams. These clients might also benefit from bespoke mortgage products tailored to their unique financial circumstances.
By understanding these complexities and how to navigate them, you can provide valuable assistance to clients with unique financial situations, ensuring they receive the best possible mortgage solutions.
When lenders are considering lending to a business owner a company’s financial reports provide valuable insights into a company's financial health.
Here's a breakdown of key components, along with why they are important to a lender when assessing the terms and amount they are prepared to lend:
Equipping yourself with the knowledge to decipher business accounts empowers you to confidently guide even the most complex clients towards homeownership. By understanding the intricacies of financial statements like P&Ls and cash flow statements, you can effectively navigate the lending process for the self-employed.
For brokers specialising in commercial lending, understanding business credit reports is crucial. Similar to personal credit reports, these reports document a company's credit history and payment behaviour.
This information helps assess a company's ability to meet its financial obligations and repay a mortgage, providing valuable insights for making informed lending decisions.
Transparency is central to building trust with your clients. By understanding lender criteria, effectively communicating with your clients and possessing the ability to analyse company accounts and credit reports, you'll be well-positioned to guide your clients through their mortgage journey.
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