You may be an experienced mortgage adviser, but – with inflation and the cost of living continuing to rise – today’s mortgage market presents new challenges. Gordon Reid looks at the issues, how they impact advisers and how you can prepare yourself for what’s ahead.
In the financial year ending 31 Mar 2021, the Financial Ombudsman received over 9,000 complaints relating to mortgages, of which approximately 25% were upheld.
There were fewer complaints about historical unaffordable lending, but more about unaffordable second charge loans.
Further analysis highlighted more examples of vulnerability, debt and consumers falling into arrears for loans they could never afford – and should never have been granted.
With interest rates and the general cost of living rising, affordability is a bigger issue than ever. We can expect complaint levels to continue to rise too.
Supporting vulnerable customers
The Financial Conduct Authority (FCA) recently highlighted the need for lenders to support borrowers, especially the vulnerable and those in financial difficulty.
The regulator’s primary focus may be on lenders, but advisers also have a significant role to play – particularly when it comes to borrowers whose existing mortgage deals are coming to an end.
Many of these customers are likely to find their interest payments rising – perhaps by as much as 25% or more. Some may find themselves with mortgages they’d be unable to take out under current lending rules.
These customers are also likely to be struggling with their bills and other debts. And, any impact on their financial health is could affect their physical and mental wellbeing.
How an advanced mortgage qualification can help
So, how does CeMAP Diploma help you cope, better than many of your peers, in a difficult market? And, how does this translate to the service you are able to provide your customers?
Well, it will:
- expand your understanding of the financial impact of both global and personal changes in circumstances for your mortgage customers
- help you develop your knowledge of a broader range of potential options and financial solutions
- develop your research and analysis skills
- enable you to undertake more detailed analyses of risks, assumptions, issues and dependencies, linked to each potential solution
- expand your knowledge of the mortgage advice process
- teach you more about specialist mortgage products
- enhance your ability to deal with more complex and specialist customer needs
- increase your understanding of the importance of effective communication and ethical behaviours
- ensure that you are able to treat your customers fairly, particularly those who may be vulnerable or in need of additional support.
In addition to developing your skills and knowledge, by undertaking CeMAP Diploma you’ll be showing your customers and potential employers that you are committed to being the best you can be.
By taking an advanced mortgage qualification, you can demonstrate that you’re prepared to spend time building your skills, to offer the best possible service.
Even if you’ve been in the industry for many years, you’re likely to have gaps in your skills.
After all, the mortgage market has seen more change in the last 12 months than in the 15 years before that. So, even if you are an experienced adviser, completing CeMAP Diploma is a great way to ensure that your current level of expertise matches your experience.
More about CeMAP Diploma