8 Skyline | Relaunch Edition 1 | Winter 2021
What changes in advice have clients sought ?
As mentioned , first-time buyers were a prime audience for brokers during 2020 . In fact , 77 % of brokers surveyed say they were asked to consult on first-time buying .
Conversely , 42 % of brokers were also asked about later life mortgages and Retirement Interest Only products . Interestingly , it seems the type of requests being received are polarised between new entrants to the market and clients who need help with later life products .
Other changes brokers have faced include adapting to remote video call meetings with clients due to social distancing rules . “ Although I miss the face-to-face ,” commented one broker “ I have found not travelling far more effective , as all workloads seem to have increased .”
However , as another broker commented , the impact of COVID-19 on processing applications has also meant an increased need to manage timescales and client expectations . In addition , the pandemic has affected the ability to lend to certain groups – such as self-employed – whilst tenants ’ arrears have meant some landlords relying on mortgage payment holidays .
What ’ s the outlook for the year ahead ?
As we look forward to what we hope will be a better year for all of us , there were one or two predictions from our panel of brokers that sounded a note of optimism .
First , over a third of brokers expect their clients to increase the size of their property portfolios . This in part is due to incentives such as the reduction in stamp duty . Over half of those we talked to think portfolios will remain static , with only 15 % believing landlords will look to offload properties into 2021 .
Whilst re-mortgaging is predicted to be the top priority for clients in 2021 , brokers expect to be kept busy in year ahead in other areas too . These include first-time buyers moving to the ‘ burbs and clients releasing equity to help loved ones , as well as fund their own rural portfolios .
On a more general basis , 55 % of our broker panel believe the business outlook for 2021 to be either optimistic or very optimistic . This is due to the government ’ s continued support of first-time buyers and reduced stamp duty for those wishing to expand their property portfolios .
In comparison , just over a quarter of brokers ( 27 %) are somewhat or very concerned about the business outlook for 2021 . They feel the longer the pandemic continues , the more uncertain it is that money will be available to make buying homes as attractive as it is now .
A year of change and challenges
Talking to our panel of brokers revealed just how they ’ ve adapted to the challenges and changes thrown up by 2020 . Whatever 2021 has in store , we ’ re sure that once again they ’ ll find new ways to meet the changing needs of their clients .
Talking to our panel of brokers revealed just how they ’ ve adapted to the challenges and changes thrown up by 2020 . Whatever 2021 has in store , we ’ re sure that once again they ’ ll find new ways to meet the changing needs of their clients
Our adviser research panel comprised 26 brokers who took part in Leeds Building Society ’ s Intermediary TalkingPoint forum in November 2020 . This allows brokers to share their views and help us shape future product innovations and service improvements .