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Growing a loan book is a goal for all mortgage brokers, but it’s not all about getting new clients – it’s about keeping existing clients too.
Client run-off occurs when clients end their loan with a mortgage broker to start a new loan with either a new broker or directly with a lender, and brokers should have plans in place to minimise or potentially eliminate any run-off.
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With so many direct offers from lenders and constant changes within the mortgage market, clients will often be put in a position where they feel that they are able to get a better deal. It is essential to build a relationship with clients to ensure that, as the broker, you are their first point of call. By regularly communicating with clients, brokers can keep themselves ‘front of mind’ for clients. Communications can include newsletters, offers and specific informational emails. Brokers should remain up to date with changes in the mortgage market and notify clients of any relevant changes, outlining how it can affect them and what can be done, if anything, to ensure that they are getting the most suitable deal.
The best-case scenario is when a broker tells a client about relevant changes rather than the client contacting the broker to enquire. In a good broker-client relationship, clients will feel comfortable approaching their broker with any query, and it will seem easy for the client to speak with their broker. In this case, if clients are approached by another lender or mortgage broker, the client will contact their broker first to ask them for their opinion rather than ‘running off’.
It can also help if a broker positions themselves as a part of the client’s bigger picture. At 1st Street, we offer a well-rounded service which includes home loans, commercial loans, insurance and financial planning. We also have close relationships with real estate agents and solicitors in order to offer clients a premium service while keeping them close at the same time.
Brokers that establish and maintain good relationships with clients will avoid client run-off as much as possible, and they will have the best chance of building a solid loan book.
