Podcast #61 - How Offset Mortgages can support your clients

Added 08/07/21 - 3 min read

In episode 61 of the Growth Series podcast, Sally Laker, Managing Director at Mortgage Intelligence is joined by Andy Millard, Corporate Account Manager at Accord. In this episode, they discuss offset mortgages and how they are often underutilised when compared to customers who go direct to a lender. They cover the benefits of offset mortgages for your clients, and dispel a few misconceptions along the way.

Andy kicks off the conversation by introducing Sally and asks her about her own experience with offset mortgages, before moving onto what the key features of offset mortgages are. Sally explains the main differences that an offset mortgage brings, namely that it’s a different mindset and a financial tool. Sally points out that while interest rates are low, savings are growing, and that brings offset as an option into the limelight.

She explains how offset provides flexibility for a client to use their money when they need it, and even pay off their mortgage sooner than planned, if that is the right option for them.

Andy touches on how the knowledge around offset has updated over time and the needs to utilise offset have also changed. This can be a challenge for both brokers who are new to the industry and that have been in the industry for a while but originally learned about offset mortgages under different circumstances. This leads to a discussion around how aware clients actually are that offset mortgages are an option. Indeed, without a recommendation from a broker it’s possible that clients will never have heard of offset mortgages.

The pair discuss the perception of offset mortgages as being a high net worth product. The conclusion is that while an offset mortgage is a good product for high net worth individuals, as their earnings can be made up of bonus payments, dividends and seasonal ups and downs, there is also more to it than that. It can also be an applicable option for anybody who is used to keeping an eye on their finances and wants to utilise every penny to maximise their financial position.

This raises the question of whether offset mortgages are underutilised by brokers. Historically, the answer appears to be yes, due to perception, but today’s customers are more likely to be switching providers for a variety of services - be it their phone, energy or internet provider. Offset can also be an opportunity for brokers to maintain consistent communication with their customers.

Read more: Offset Mortgage Guide

Rounding off the conversation, Andy opens a discussion around the sort of things that advisers should be on the lookout for when determining whether offset is the right choice for their clients. Sally describes the importance of a fact-finding process to understand the financial position and needs of your clients. They also talk about how offset does not suit everybody, and whether there is an ideal demographic. Rather than settling on a specific demographic, Sally suggests that it's about finding clients who are financially aware and want to use the tools at their disposal to maximise their income.

Finally, Sally provides her number one top tip for brokers who are considering utilising offset mortgages more in their offering. She suggests considering trialling an offset mortgage yourself to see what a great tool it is for managing your finances as a whole.

The Growth Series is a dedicated resource that aims to help mortgage brokers grow their business using digital and communications marketing techniques. For more hints and tips on how to grow your business, you can sign up to the Growth Series for free, here.

0.46 - 16.25 discuss:

Introduction to Sally
Key features of offset mortgages
The challenge that offset brings for brokers
How aware clients are of offset mortgages as an option
Are offset mortgages only a high net worth product?
Whether offset mortgages are underutilised by brokers
Examples of how an offset mortgage can be beneficial to clients of varying net worth
Offset as an opportunity for brokers to maintain communication with their customers
Who are offset mortgages right for?
The importance of understanding your clients
Number one tip for utilising offset mortgages in your offering