Issuu

inspiration March 2020

magazine

N O I T C E T TIAL O R P N E G T N O I P S I R T U I O R Y O I H S R A P E UNL

In this edition 04

Get Protection Done

Selling the standards

Conference Key Note Speakers and Awards

Building momentum

Creating a social media strategy

SPREAD THE WORD 02

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Christopher Tanner CEO

fter several months of debate and confusion, initial key performance indicators suggest that confidence is returning to the mortgage market. Estate Agents are reporting higher levels of footfall, there are more properties up for sale, and mortgage pricing remains at record historic lows. Whether you wanted in or out of Europe, feel worried about such things as the FCA’s opinions on Executiononly, the disappearance of Help to Buy and the potential of H2B2 but we know how long projects with H2 in the title can take, it’s a good time to be a professional mortgage adviser. Its clear, from the levels of mortgage business being written in the first quarter through HL Partnership Firms, customers are clearly looking for advice on their finances whether financing their dream home, locking into a new fixed rate or being proactive with a rate switch on their product transfer. Whilst rates remain low and sentiment is positive the outlook we can all be optimistic about what 2020 will offer. As a Network we haven’t stood still. There were record volumes of mortgage business lent via members in 2019, nearly £6.5billion in completions from £8bn in applications, and, as we all know that people are at risk of losing the homes they have worked so hard to buy if they don’t keep up their mortgage payments it was great to protection sales up by 20%. There is a duty on us all to talk about insurance across all products, both Life and General Insurance – you only have to hear the stories from people who have suffered from the recent flooding to understand how important it is to have good quality home insurance in place. As with the election there is a clear message, advice is essential but that advice must not be limited to just the mortgage – we need to get protection done, a key message for the Network in 2020.

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I would also like to welcome Peter Cobley to the Board of Directors who joins us as Finance Director. Peter’s experience in the mortgage and protection distribution market is unrivalled and I’m sure his insight he will give us as a Board as we grow will add real value to your businesses both in terms of guidance and delivering fast and efficient payment systems. It is also great to see that the work adviser firms has been recognised by Lloyds Banking Group and that the Network is now a key account for the lender. This is testament to the quality of business you submit, the achievement to reach this status is well deserved and its relevance shouldn’t be under estimated. We continue to work closely with our technology partners, 360dotnet, iPipeline and Twenty7Tec to mitigate the risk that the changes the Financial Conduct Authority have delivered around a relaxation of the advice rules and is a wake up call to us all. It demonstrates that our strategy of putting tech at the heart of our business and the need to stay close to customers, reminding them how important advice is to achieving financial security, is key to the continued mutual success of the Network and the Firms it works with. Mortgage and Insurance planning is a complicated process and one that, if you get it wrong, can leave your customer out of pocket, out of luck and most probably out of their home. We will continue to evolve our technology solution over 2020 to mitigate the risk of executiononly but we can only go so far and I urge you to stay in touch with customers, make sure they understand the value you add, and deliver a great service in whatever interaction they request. I wish you every success in 2020, the year of transition. Christopher Tanner CEO

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Get Protection Done 04

hen Boris Johnson ran his election campaign last year he was very clear in terms of his message. You were left in no doubt about what he wanted to do, and probably how he would go about it. And in the end the majority put their X in the box to give the new Prime Minister his mandate to Get Brexit Done. And on the 31st January it happened. The Protection Manifesto When an adviser sits in front of a customer, and hands over the IDD which gives a clear message “I’m going to get the mortgage and the insurance done”, and the customer elects to proceed, why is it in the majority of cases it’s just the mortgage that’s delivered and not the Insurance? Is it time that we reflect on our duty of care, not just to find the right borrowing to put people in their home, but to plan for the longer term to keep people in their

A Forward Thinking Network.

home should the unexpected materialise, to make protection happen? We know that there is a shift in the borrowing habits of UK consumers; product transfers now account for over one in five transactions and there is a shift from two year to five fixed rates. With this comes risk. Risk that people don’t look at the bigger picture when it comes to their financial wellbeing. Indeed Canada Life ran a survey last year and found that almost Half (49%) of respondents had a change in personal circumstances since taking out their mortgages, but only 45% of them had updated their insurances. That leaves a staggering 55% who experienced a change in circumstances but either did not update their protection or have no protection in the first place, which could make them more vulnerable to a financial shock. Of course we talk about customers but how many would consider themselves a customer if they were to fall ill and found out that if they had had an insurance conversation then the financial impact may have been softened.

Shaun Almond Managing Director

So it’s up to all of us to have the protection conversation as stated in our Adviser Manifesto, we said we were going to talk about protection so let’s deliver on our commitments. In conversations about borrowing, new parents should always consider whether their level of cover protects their family as well as their home; and an existing Critical illness policy must be reviewed to check it covers children. Customers must be made aware by clear signposting of the support services provided by an insurer including personal nurse advisers, second medical opinions, counselling services or health and wellbeing advice. And don’t forget that increase to a customer’s cover to take into account their changing needs and lifestyle, doesn’t always need a new policy if there is a guaranteed insurability option available. There are so many questions that can and should be asked to open up a protection conversation, has there been a pay rise recently, a reduction in household income, or a change in jobs which

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could bring with it a new employers benefit package? A reduction in income may mean the part-time working through parenthood, eldercare, studying, lifestyle choice, or even redundancy. Does this make them more financially dependent on another member of the household? Has a change in income meant a loss of or the gaining of a valuable employee benefit package or has the customer gone self-employed which brings with it the potential for tax efficient insurance solutions? So many questions where the answer is a protection review. Regardless of the length of your clients’ mortgage deals, what’s clear is that regular communication is key. If opportunities for biennial mortgage reviews are reducing, advisers should be talking about protection needs instead. So when we hand over the IDD, the Firms’ Manifesto, a document that clearly states what we are committed to delivering, the result is just mortgage advice; Lets make sure we Get Protection Done.

Selling the Standards

ack in 2018 the Financial Conduct Authority (FCA) launched their Mortgage Market Study (MMS) to evaluate the effectiveness of the measures implemented as a result of the Mortgage Market Review (MMR; 2014) and to identify any potential consumer harm that resulted from the measures taken.

The Study was designed to check that MMR hadnâ€™t created a barrier for firms wishing to create tools to help customers choose a mortgage, thereby potentially stifling innovation in the market. The FCA wanted to ensure customers who were in a position to execute their own mortgage didnâ€™t find it difficult to do so. They also wanted to check that for those having to seek advice could it be that it may have led to poor outcomes in terms of price and costs.

A Forward Thinking Network.

Following a lengthy consultation with trade and industry bodies, mortgage firms and lenders on proposals, the Final Rules have now been published and came into effect from the end of January. As was feared towards the latter stages of the consultation period, the FCA brought into effect significant changes in line with the manner in which it conducted the study; that is to repeal some of the provisions of the MMR in terms of ensuring advice was at the forefront of the way

Gavin Earnshaw Compliance Director

consumers sought out the best deal for their situation. We saw a major relaxation opening up ‘execution only’ as something the FCA now support in line with their desire to see the UK lead the Fintech revolution for banking and financial services. In short the FCA have put innovation ahead of customer outcomes. Whilst many will not agree with the changes having seen the value that advice delivers in

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terms of great customer outcomes, the FCA have changed their guidance on what constitutes a regulated activity, how filtering tools can remain outside of the threshold of advice and how the results of such filtering tools can influence the customer’s decision. The FCA has also removed the prescriptive requirements that were in place for firms in relation to execution-only sales policies and

have also clarified that they are comfortable with differing distribution channels within the same businesses charging different fees based on the relative cost of the distribution (i.e. execution only vs. advised sales channels). Finally, a new rule which has been introduced requires a firm to explain why it is recommending a mortgage that is not the cheapest available from its product range that it feels meets the customer’s needs and circumstances. This means that you must clearly explain the product choice and price and why it is the best advice for your customer. New Competition? You may think that these changes are a relaxing of MMR and a potential return to the dark days of 2008 with consumers helping themselves to ever-increasingly unaffordable loans through self-certification and non-disclosure, but as we all know applying for a mortgage is not a simple process.

assess whether the mortgage recommended is right for the customer and that you provide customers with a suitability letter setting out your recommendation and why a mortgage has been recommended where it may not appear to be the cheapest from the sourcing results. We will however publish further policy that will give guidance on how to demonstrate this better within the letter. We work in a market that is both heavily regulated and constantly changing to meet the needs of consumers. Whilst we may not agree that a reintroduction of execution-only sales is the right direction of travel, and we lobby heavily through our trade body - AMI - to challenge decisions where we feel the risk of customer detriment increases, there is the need to adapt and work within the new framework. Ultimately we all have customers who look for help and guidance, and it is up to us to continue to promote the value of the Adviser and the benefits they bring both financially and emotionally.

There will be organisations out there rubbing their hands with glee and designing their masterplan to take a large chunk of the intermediary market. With the new rules I don’t doubt that there will be some success. However, many customers now see advice as core to the mortgage process and they truly value the relationship they have with their Adviser. What the new rules offer is an increase in the amount of interaction firms can have with customers before a sale has to be treated as advised, so there are areas we can embrace. HLPartnership remains committed to the advised model as we feel that this offers the best outcomes to your customer base and these new rules do not impact our strategy in this regard. We will continue to explore and implement new tools for firms to help them and their customers evaluate product choice and suitability of recommendations that make the whole experience of working with an adviser to find the right mortgage both simple and enjoyable. Suitability of Advice When it comes to product choice and price, there is little impact as a consequence of the new ‘why not the cheapest’ rule. In reality, this standard is already applied within firms and captured in the sales process, designed to ensure thorough product research is carried out and documented on the file. Our internal compliance team will

A Forward Thinking Network.

You can read the original consultation paper here: https://www.fca.org.uk/publication/ consultation/cp19-17.pdf You can read the full policy statement with final rules here: https://www.fca.org.uk/publication/ policy/ps20-01.pdf

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Neil Hoare Commercial Director

don’t think it will have escaped your attention that there has been a ever growing proportion of mortgage business now being delivered by advisers which is purely product transfer (PT). Looking at the numbers of PT’s being advised on by HLP Firms, they now account for just over one in five of all mortgages written by HLP members, and its anticipated they will total over £1.5bn in borrowing in 2020 in the Network alone.

The first point to make is that data is key to the longevity of an adviser firm, if you don’t know a customer has a mortgage coming up for review, then you can’t design a retention strategy. We need to call it a retention strategy as in this

Call, Call, Call again for £70bn 10

Indeed analysis by Barclays has indicated that between January 2020 and April 2020, over £61.9 billion worth of residential mortgages and almost £7.5 billion worth of buy-to-let deals in the whole market will have come to the end of their terms. The opportunity for client engagement supporting them with their remortgage needs has never been greater. Based on the numbers ask yourself how does the sales model need to change from the traditional lead generation, advice, recommendation and application now that for many firms there is a recurring income stream sitting within their own client bank?

A Forward Thinking Network.

modern day connected world there will be plenty of encouragement from companies who have the data for customers to seek alternatives to the traditional adviser route that may be cheaper and in many cases less obtrusive. In the past, criticism has been placed firmly at the door of Lenders about their own retention strategies when it comes to business originally introduced to them via the intermediary channel. We need to recognise that, now that PTs are becoming more common place in the intermediary channel, competition will rise not necessarily from Lenders but those on-line businesses that offer cuddly toys, dancing superheroes, and suggest they can calm fears over money worries.

The first step in any retention strategy is to have your information in one place and that means your CRM. Work out the value of the product transfer for your business and dedicate time to constructing an early warning system so you know exactly when and which client will be due for review. The average mortgage in the HLP Network is £196k and the worst gross proc fee for a PT is 0.2%, so each case, if the customer elects to go with the rate switch product is worth just under £400 a case. How many of these do you have sitting in your client bank whether it’s on the HLP CRM system, on a separate spreadsheet, in a filing cabinet, a diary or in a pile of paper, if you know that each is going to be worth £400 then the simple message is how much income do you know you can generate just from your client bank alone, when and what is the contact strategy? Then it’s about communication, making sure you are front of mind when the time comes to bank the £400 the lender is going to give you just for doing what you said you would in the suitability letter. The power of three always comes to mind when communicating to people, tell your customer that they need to talk about their expiring mortgage deal, tell them again and for good measure tell them once more. Many of us will remember the famous speech from Tony Blair who used the phrase Education Education Education, and we knew that the focus for the Government was education. Be proactive and have a message that reminds the customer of the value you add to the process and don’t be afraid to tell them, tell them again and do it once more for good measure. After all many customers have long memories and most likely don’t trust their bank as they do you, their adviser and need the reassurance that the action they are going to take with a sum of money that keeps them in their home, is the right course of action. Of course we mustn’t forget that there is the insurances to review and all the expert advice that comes with a strong adviser/customer relationship that’s been built on years of solid guidance and support. So the message is take time out of your day to look at the potential of your client bank and build an business plan based on what you know you can create, design a communication plan aimed purely at retention, and be proactive, proactive and proactive with your Product Transfers. If there was a £400 bank note, I’m sure you would make sure each of them was in a safe place so understand how many notes you have and don’t let those cases slip away just because a customer chose to value a cuddly toy more than great financial advice.

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Product features - early information as promised

e are delighted that, via Solution Builder and iPipeline, members now have access to an innovative tool to help advisers to help find the best policy for their customers, quickly demonstrate why they may

not have selected the cheapest, and to clearly highlight these features to their customers. Called â€œProduct Featuresâ€?, Solution Builder now allows advisers considering Life Insurance, Critical Illness Insurance, Income Protection and Business Protection to compare the top ten commonly used Features across selected insurers in three simple steps.

Step 1: Select up to 5 products you are interested in comparing:

Step 2: Select up to 10 features your client is interested in:

A Forward Thinking Network.

Step 3: Produce a report is produced which you can print and download:

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The example report just shows how it can help you give the customer the information they need to make the right decision, and really helps advisers get protection done.

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The Network Mail In a world where everyone is competing for your customers, you must be at the forefront of your clients mind.

This is why weâ€™ve created and developed a fully personalised client-facing e-newsletter that matches your companies branding and personality. The headers and footers of the e-newsletter will link to your website and can be a potential source of extra traffic. The Network Mail is sent out once a month, it includes 4 purposely designed articles to suit your client base.

Industry Average Open / Click Through Rates Open Rate - 9.46% CTR - 0.88%

To increase engagement and communication with your clients, sign up today.

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Around the Network NatWest Local Hero Mortgage Awards shortlists announced The lender is recognising brokers in the industry who have gone beyond everyday expectations to put the customer and their local community at the heart of their firm. Across the 12 regional categories, firms have been asked to demonstrate their position as a local mortgage and protection expert, their commitment to quality advice, excellent customer outcomes, and their positive contributions to their local community. HLPartnership firms that have been nominated are:

Best Firm, East of England CLS Money Best Firm, West Midlands S J Financial Solutions Best Firm, Central England Citrus Mortgages

Congratulations to all three, we hope they all go on to win in their respective categories.

Q3 Regional Broker of the Quarter from Nationwide Congratulations to Brian Howitt from Oadby Mortgages won the Q3 Regional Broker of the Quarter from Nationwide. In recognition not only for the level of business submitted during this time, but also the quality of submissions due to the professional way Brian went about placing business with Nationwide.

BROKER OF THE QUARTER awarded to

Brian Howitt Thank you for all your support and business over the last quarter

Zoe Griffin Regional Manager

September 2019 Date

Peter Hunt at Grand Designs ... If you were at Grand Designs Live at the NEC in Birmingham last year, you would have been invited to the main stage in the arena “ask an expert”. And joining Kevin McCloud, from the Grand Designs TV series and a host of industry specialists live on stage was Moneywatch Finance’s Peter Hunt as he answered questions from the audience exploring the various aspects of their self-build projects and more.

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Resilience on the agenda

n a recent “Dear CEO” letter to the Asset Management sector of the Financial Services market, the FCA highlighted the reliance that is placed on robust and reliable technology, which underpins a smooth operation of their businesses and the protection of client assets.

The expectation and assumption was that a firm must ensure it manages its technology and cyber risk appropriately, including through appropriate oversight of third party firms and service providers. In its consultation paper on Operational resilience, i.e. the ability of firms such as HLPartnership and the financial sector as a whole to prevent, adapt, respond to, recover and learn from operational disruptions the FCA has given examples from its work with four types of firms, a large dualregulated high-street bank, an Enhanced scope wealth management services firm operating in the digital space, a group of medium sized asset managers and an insurer with 350 employees

A Forward Thinking Network.

providing life, motor, home, and pet insurance. Whilst none of these are of the size of HLP, the paper indicates the direction of travel for the regulator and I’m sure it won’t be long before the consultation results impact on us as a significant distributor of financial services products in the UK. So whether we are a large organisation or a small operation what do we need to do to satisfy ourselves that if the FCA were to test our operational effectiveness? The first step is always to identify any important business services that if disrupted could cause harm to consumers and also recognise and document the people, processes, technology, facilities and information that support our important business and consumer services. Then there will be impact tolerances set and a programme created to test our ability to remain within the measures we have set ourselves through a range of severe but plausible disruption scenarios. If we do fail in our programme then the expectation is we will document and learn from our mistakes, identify changes, prioritise

Bob Haselip Operations Director

and invest in an ability to respond and recover from disruptions as effectively as possible. And of course we must create an effective internal and external communications plan for when important business services are disrupted. So if you call in expecting to hear from one of the team, and find that a herd of giant elephants have run through the building, don’t be surprised as we may just be seeing how resilient our business is to an unforeseen disaster whether real or imagined. Ultimately operational disruptions can have many causes including, for example, technology failures or when making changes to systems. Some disruptions may also be caused by matters outside of our control, such as a cyber-attack or wider telecommunications or power failure, and it’s up to us to make sure we have the resilience in place, drive change where it is needed whether that be investing in improving processes, better infrastructure, training, building back-up systems, addressing vulnerabilities in legacy systems, and continually improve contingency plans.

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Focusing on our operational resilience encourages us as a Network to consider alternative ways how we can utilise technology better and ultimately improve the service we deliver to members and our business partners, in a way that monitoring individual elements and processes cannot. Ultimately it’s our role to make sure consumers are able to buy the houses they want, find alternative financing when necessary, and have the insurance in place protect the home, the individual and the family. And as a Network we need to make sure the sale is compliant and commissions are distributed in an accurate and timely manner for the work that’s been done. We will continue to strive to improve our systems, invest in technology and ensure that, should those elephants decide to rampage through HLP, we have a contingency plan in place so no-one, apart from those in the office, sees any disruption.

Conference Key Note speakers and Award Winners On the 23rd January, Heythrop Park played host to the 2020 Conference with over 300 delegates, lender and service providers in attendance. Hosted by the network’s Commercial Director, Neil Hoare, the event followed the theme of “Stronger Together”. It was the first time that both HLP & MSN members joined together as one to celebrate the growth and success of the network. Delegates heard from industry leaders and were able to interact with a specially selected panel of speakers. The evening gala dinner and awards were hosted by former politician, author and broadcaster Gyles Brandreth where HLP recognised the success of the network’s members and business partners.

Opening Address The opening address was given by MD, Shaun Almond, who congratulated delegates and members on record lending of £6 billion in 2019 and told the Conference that the network now had 336 firms and 656 advisers. The theme of Shaun’s speech covered the emphasis that HLP is putting on protection this year and exhorted delegates to make it a priority in 2020. The UK Mortgage Market L&G Mortgage Club Director, Kevin Roberts, gave his view of the UK mortgage market and having congratulated HLP members for their contribution to the mortgage club, he went on to say that there were headwinds to face with strong competition for new business, thin margins for lenders and the effects of longer term fixed rate deals affecting new business in 2020. His message to brokers was to manage customer relationships in order to maintain contact and minimise the effect of competitor interference in luring customers away. A Little More Disney Richard Beardshaw (HSBC) gave a revealing talk on Disney and their five basic principles which reinforce the customer experience and how he has used them to enhance his approach to managing his team and challenged delegates to use them in their businesses.

A Forward Thinking Network.

Banking Megatrends Dan Salmons (RBS) talked about trends in the consumer market and the technology space and how organising data and improving connectivity with the digital world was becoming one of the keys for businesses large and small. The Equity Release Council Chris Pond, Chair of the Equity Release Council’s Standards Board talked about the safeguards available for customers who use ERC members as strong reasons why advisers should get involved as well as the innovation taking place and the growing numbers of lenders, including Nationwide, who are getting involved Choppy Waters Ahead? Paul Lewis, the BBC presenter of Moneybox gave a speech outlining the reasons he felt that there were ‘choppy waters’ ahead for the lending industry because of ‘overcomplification’ caused by the multitude of different products and the issue of past sales of interest only mortgages coming back to bite as well as the obsession with relaxing lending criteria and creating more opportunities for debt. RedArc Christine Husbands, Managing Director of RedArc talked about the work that RedArc does working closely with insurance companies. RedArc provides qualified nurses to give insured people practical advice and emotional support to help them cope with their experience of illness, disability, trauma or bereavement. Regulation Frustrations Rob Sinclair, Chairman of AMI demonstrated his exasperation with the regulator over their proposals for widening execution only describing our beloved FCA in terms that would have shocked an audience of nuns.

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Member Award Winners 2019 / 2020

Best Adviser Firm - South West Yes Mortgage Services

otland rth, Sc o N irm viser F Best Ad ern Ireland ns h & Nort ancial Solutio in AMG F

nding Buy to Let Le r fo rm Fi r e Best Advis ker Buy to Let Bro

ing e Lend f i L r e t s for La r Firm ge Associate e s i v d a A g t t s r e o B ndent M Indepe

019 ser 2 i v d A Best art H b Ro

Best Overall Adviser Firm and Midlands & Wales SJ Financial Solutions

Best Adviser Firm- London & The East and for Protection CLS Money

Best Adviser Firm - South Ea Michael Ushe r Mortgage Se st rvices

Best Adviser Firm for GI Moneywatch Finance

Best Ad Citrus Mviser Firm fo r Resid ortgage ential L s ending

Best Tina Adviser 2 Saun 0 ders 19

IDeveloping our business ts great to see that we have started this year as we ended the last, with strong year on year growth in mortgage completions of around 15% (Jan 20 v. Jan 19), after a record month in December 2019. There is no doubt about it, there is lots going on!

There is a significant pipeline of potential new ARs and advisers, and, with more certainty in the market after the general election result and “getting Brexit done”, we continue to see very low interest rates, lenders competing for market share and Insurers delivering product enhancements; all this is leading to a greater sense of optimism among network members and their customers. We also recently entered a whole new world of regulatory supervision following the implementation of the FCA’s Senior Managers regime in December, which increases personal responsibility and accountability on the directors of the Network. 22

In a fast evolving business it is important to ensure we have the people in place in roles to

A Forward Thinking Network.

Gavin Earnshaw Compliance Director

help us adapt to the growth of the Network and the ever increasing regulatory demands by the FCA. For this reason we have made some changes and been recruiting excellent new people. HLP is delighted to confirm that Jeanette Stewart has been promoted to Head of Compliance and will now oversee all compliance functions, both field-based and internal (office). Paul Gentles will continue to manage the internal compliance team on a day to day basis and will work closely with Jeanette in her new role to ensure we continue to develop the compliance function to meet the needs of the business, our partners and the FCA. We have also recognised the need to maintain

to support your growth the focus on specific areas of our regulatory responsibilities and have appointed James Stewart to take responsibility for Policy Development and Complaints Management. James will be joined by a new Policy and Complaints Support person, Becky Short. In addition to these changes we have appointed and welcomed Hannah Turner to our Leicester office to become the first line support for member’s queries and questions. In turn she will be supported by the telephone BDM team Rob and Adil as we aim to improve access to information for our members. We also recently welcomed Ruby Savani to the membership team and, in her role as Membership Assistant, she is providing much

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needed extra support in this incredibly busy area of the business. Baljit Rakkar has also joined the Internal Compliance team as Compliance Review Officer, replacing Jacqui Wilson who left the business recently. Finally the Marketing team has grown with the addition of Lauren Richardson as Marketing Executive and it’s great to see that there is even more support than ever for our Appointed Representatives as we help them grow by enabling them to promote their businesses to customers. As you can see we continue to invest in making sure that the business continues to grow in a safe and sustainable way, and we hope that you’ll get to meet them soon.

Sue Read Later Life Lending Manager

Building Momentum 24

or many advisers Equity Release has a chequered history but itâ€™s odd to think that the first plan was in 1965 before Pickles discovered the World Cup in a hedge and when houses were typically valued at ÂŁ4,000.

Since then so much has changed in terms of the growth of equity value, range of life time mortgage products and growth in the market, and of course a commitment to standards and safeguards for consumers established by the Equity Release Council and its predecessor trade body Safe Home Income Plans. We now have a number of customer safeguards including a No-Negative Equity guarantee, a promise of tenure for life and the freedom to move to a suitable property. Of course all potential equity release customers must now have independent legal advice before they

A Forward Thinking Network.

enter into any agreement which provides an additional safeguard. Thanks to product innovation alongside a low interest rate economy we are now seeing borrowing solutions to meet the challenges of an ageing population, demands for intergenerational fairness and ease of access to property wealth. According to the Equity Release Council, older age groups are not just the biggest owners of property; they also depend the most on its contribution to their overall finances. Bricks and mortar accounts for 40p in every ÂŁ1 of household wealth for those aged 65+, rising to 47p among the over-75s versus 35p across the nation. The report suggests these shifting trends are driving a change in attitude among the over-45 homeowner population with this generation facing multiple financial challenges as they seek to live longer, healthier lives while

balancing their needs with providing support for younger generations. Later Life Lending is a market which is building momentum. Initial reports indicate £3.9 billion was unlocked over the course of 2019 – a strong but steady performance with a small dip of 3% from 2018’s record high with 44,870 new customers in 2019. Q4 alone welcomed 11,866 new customers the highest number over the course of the year. This growth in the equity release market has been driven by genuine consumer needs among the UK’s ageing population in response to wide-ranging financial challenges. Common uses of housing wealth include supplementing pension incomes, paying for social care, paying off existing debt, supporting family members and meeting lifestyle costs. The Later Life Lending Market has come a long

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way in the past 10 years and continue to evolve very rapidly and once siloed specialist areas, are increasingly merging along the holistic pathway. At the same, as the market continues to grow there is a need for mortgage advisers to have a broader view of the later life market. There is therefore an opportunity for advisers looking to evolve their proposition to continue to serve a growing number of customers, and maintain an adequate supply of highquality advice. A new market, whatever its size, will have its attractions and as a Network we feel we have the path to competence to support those who are already active participants or are looking for an entry point or referral model. Whatever the route advisers choose to take, we know that safeguards and regulation will eventually make later life lending a mainstream solution, satisfying a customer need and delivering a great outcome for all.

tâ€™s interesting when you analyse the performance of a commission department, the number of transactions the people in the team process, the level of automation you can achieve, and how dependent you are when passing money on from a lender or insurer to an adviser firm on an accurate statement delivered to the right place in a timely manner. As the Network matures and becomes larger of course you start to see volumes of renewal commission on protection policies grow, as firms become more productive on mortgages you see the growth of non-indemnity cases, and of course the more members that become comfortable with selling home insurance, the more we see repeat payments. So overall as a department we are now processing more than

ten thousand transactions a week and of course this does throw up questions on payments whether commission that is missing, an amount which is different to that what is expected or a client delivers an unanticipated clawback. The level of questions in comparison to the amount of transactions we process is small, but we do treat every query raised as a matter of real importance. Strategic Goals There are two key strategic goals for me in my role. The first is to add more automation to our commission processing systems and I appreciate that this has been on the roadmap for some time now and has probably had a number of false starts. Investment in systems is underway with the end result that we reduce the level of manual commission processing and increase the levels of visibility of payments.

Finance

The second strategic goal is to improve the quality of communication the commissions team has with those members that need to question a commission payment. In the past, the team has strived to resolve the issue before making contact and in many cases this has meant waiting for responses from the lender or provider. Delays in responding can create frustration and make it appear nothing is happening which is not normally the case. It is in all our interests to keep members informed about the progress of their query, and deliver a great service as we all know how demotivating it can be to work hard to convert a mortgage or put a protection case on risk only to have to wait to be paid. Communication is key Whilst we can automate much of our own activity,

we still have statements to process, and until such time as we become a paperless industry, there will continue to be discrepancies over the money we receive into our bank account and missing statements that we know makes it difficult to allocate commission. And of course, when a Mortgage or Protection Club is involved, which generates additional revenue for you, there may well be a delay as money passes via the third party. So my commitment to all members of the Network is that I and the Commission Team will press on with our objectives to simplify payment processing and improve communication on those occasions when we have not got an immediate response to your query. That way the small proportion of questions we receive as a team will diminish over time and we can focus on improving our service to ever higher levels.

Peter Cobley Finance Director

Counts

Technology, for intermediaries

id you know in the month of February alone, mortgage research was up and advisers are leading the charge? • 1,035,518 mortgage searches • 186,122 ESIS created • 356,345 mortgage products viewed All of the above happened, in just one month.

We are seeing the same amazing bounce. Users of our SOURCE platform are researching the mortgage market are showing their worth for February. It is truly amazing to witness this. At Twenty7Tec, we provide intelligent mortgage sourcing, for intermediaries focused in quality advice. We expect to return the right product, first time and don’t see multiple searches for the same thing. Throughout 2019 we listened to feedback from our HLP partners, to help shape our sourcing system and create something that you would be confident using. Already delivering enhancements to the user experience and integration types, plus true cost calculations have been paramount with the developments delivered amongst product and criteria changes. As we head into 2020, we are excited to unveil our latest integration. Twenty7Tec and Mortgage Broker Tools (MBT) have integrated MBT Affordability into CloudTwenty7. The integration will enable users to seamlessly perform real-time affordability research alongside product sourcing, providing you with the latest technology to support your product recommendations.

A Forward Thinking Network.

MBT Affordability provides advisers a single, well designed calculator that automatically and intelligently completes individual lender calculators, collating the results on a single screen. There are no approximations or estimates as the approach ensures accurate affordability results each time. This is the first step in our integration journey with MBT, and we intend to lead the way in innovation by constantly enhancing the user experience and journey. Spring 2020 will continue to be incredibly busy at Twenty7Tec as we put the finishing touches to Criteria sourcing. This will enable the opportunity to source against lender criteria, with the facility to include multiple options per query. The ability to display lenders and criteria and apply further filters to refine lenders, and search and see all criteria for a lender. All in a single platform, with a single use of data. Lender and Product criteria sourcing, all in one place.

focused on quality advice...

Start sourcing via criteria or product, apply alternate filters to combine the two for a comprehensive set criteria and product sourcing results. Documents will be produced to reflect search parameters applied, filtering and lender criteria will provide a detailed and compliant research file.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

Throughout 2020 â€“ Apply, our application submission system, will continue to lead the way with lender integrations. More lenders are being add this year, with some of the top 10 already in pilot. As 360 looks to integrate Apply into itâ€™s CRM, you will very soon be able to benefit from Apply and itâ€™s API integrations with lenders.

Data delivers a long term goal 30

e all know that the world of technology is moving forward at a fast pace and as lenders and providers align their systems the speed of change is only going to increase through time. For HLP as a support business to its growing adviser base it’s of paramount importance that maintain the levels of support and education. This means not only do we need to provide insight and training for members so the service they offer customers is seen to be modern and multi-channel, but also for HLP staff with the aim of bringing synergies with advisers. Of course, in todays’ connected world, the opportunities to educate and communicate enhancements to our systems isn’t restricted by bricks and mortar training rooms, projectors and hotel wifi. That’s why at HL Partnership we are developing a webinar programme where we can bring together advisers and staff in an on-line event, delivering engaging and topical

A Forward Thinking Network.

content where participants can submit questions without having to leave their office, using their PC, Laptop, tablet or mobile. The developments we have planned for this year don’t stop with training. Digital developments are opening up new services and facilities such as electronic signatures for fact finds and applications, new integrations with home insurance providers, further enhancements with mortgage sourcing in preparation for straight through processing and continued updates to the sales process via the fact find. We know that many organisations are starting to understand the true value of a data centric approach. The more we know about our customers, the more information we have about the type and nature of customers, the greater the value of the business. Whether you work alone or a multi adviser firm, we know that the income potential from a client bank can be assessed, and from there a future income can be calculated. Understanding a customer’s profile allows those that own the data to diversify their business model, follow a customer through their

Sajid Kadri IT Development Manager

lifecycle and ultimately maximise the value. We often hear from our business partners about the high cost of customer acquisition so why wouldn’t you want to know everything you can about your client which in turn allows you to understand the real return on investment. For many advisers, there isn’t necessarily the time to reflect on the quality of data being captured on the customer, it’s normally about what data is required to process a mortgage or insurance application, and the opportunities to collect information that might deliver a sale in the future overlooked. Simple information such as renewal dates for insurance creates a future contact strategy, end dates of loans possibly opens up budgets for insurance sales and estimated retirement dates delivers pension referrals or possible later life lending opportunities. So when the fact find is in progress take a step back and see the customer record as the here and now and in the future – ask yourself what data do you need to offer your customer a great service in five, ten or even fifteen years in the future.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

This is nothing new, we all know that companies such as Netflix and Amazon Prime deliver content tailored to the viewer’s preferences and family members can see what each other are watching. They achieve this through data capture, data driven by the quality, its completeness, consistency, accuracy and timeliness. They create a competitive advantage by knowing their customers, anticipating their needs and delivering services which a customer may be thinking about but have yet to buy. We know that in the future, the more we know about our customers, with the data easily accessible and in a format which can be used to create value, our business models will be robust and sustainable. If we ignore data and understand the bare minimum about our customers, the greater the risk that competitors will have a negative impact. It’s up to all of us to grasp the opportunity that the digital landscape delivers.

Legal and General wanted to celebrate the heroes that make a difference to peoples’ lives so they created the Hero in the Middle competition. To praise the intermediaries that go above and beyond for their clients and their families. The ones that pull out all the stops and are determined to serve and help others; providing financial advice that makes the world a better place.

And congratulations to Charlotte and Vera for being heroes for their customer… id you know in the month of February alone, mortgage research was up and advisers are leading the charge? • 1,035,518 mortgage searches • 186,122 ESIS created • 356,345 mortgage products viewed All of the above happened, in just one month.

Heroes in the middle

A Forward Thinking Network.

Refer your secured loan enquiries to Fluent

01204 472030 brokerteam@fluentforadvisers.co.uk I www.fluentforadvisers.co.uk

This advert is for professional Intermediaries only and has not been approved for customer use. Fluent For Advisers is a Master broker and we will search our panel of lenders to find the right loan for your client. Fluent For Advisers will be processing the loan application. Data Protection register Number: 29868049. Fluent for Advisers is an authorised trading style of Fluent Money. Fluent Money is authorised and regulated by the Financial Control Authority. Firm registration number 654425. Fluent Money Ltd Company registration number 06200496. Registered Office: 102 Rivington House, Chorley New Road, Horwich, Bolton Lancashire BL6 5UE

Jeff Davidson, Head of Intermediaries

Grow your business

Why modern lending needs more

ur world is changing at an incredible rate. We’re living longer, healthier lives, having multiple careers and enjoying opportunities previous generations could never have dreamed of.

And while all of this is great news for the individual, it’s rather challenging for lenders, many of whom are relying on the same lending criteria they’ve used for years. At Together, we think it’s time to rethink lending, and as a specialist lender, we’re proud to be leading the way. And when - as they say - the only constant is change, should all lenders be following suit? It’s perhaps the world of work that’s changing the most, with the latest figures from the Institute of Employment Studies supporting some of the thinking behind Together’s most

A Forward Thinking Network.

recent lending criteria. In the last three months, growth in self-employment has outstripped growth in employment overall, with an extra 120,000 entrepreneurs now in business. Add to that the number of ‘slashies’ (those of us with multiple income strands and ‘side hustles’) and you’ve got a growing number of people rejecting the 9-to-5 to carve their own unique career path. Our ageing population is also a factor in our evolving economy. The same bank of stats show that the over-65s are staying in work longer, with employment in this age group up by nearly 50 thousand to 1.33 million. And with uncertainty in the wider economy, this group are increasingly looking for different ways to supplement their income beyond statutory retirement age. This growth in investments from the over-60s inspired us to change our first-charge residential

Richard Tugwell, Group Intermediary Relationship Director, Together

common sense mortgage lending criteria – our borrowers can now take out a loan that runs up to their 85th birthday. We also specialise in short-term lending such as bridging loans, which are often accessed by older customers to fund their property investment ambitions or bridge the gap in property chains as they move on to a new home for a new stage in their lives. We lend to customers approaching retirement age and even those drawing a pension, because we look at the whole picture, rather than relying on tickboxes to tell us whether a borrower is a safe bet. In these changing times, nothing is certain. So it’s vital that lenders keep on the front foot and adapt their models to fit with how customers are living their lives. At Together, we call this ‘lending for the new normal’, because there is no such thing as ‘normal’ these days.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

We’re a specialist lender because we don’t think one size fits all, and we’re experienced enough to make a pragmatic, human decision on every single case. We pride ourselves on being able to lend to customers with complicated circumstances, often working with multiple complications at once, and work closely with brokers to find the right solution for their clients. Modern life is complicated enough without lenders making life even more difficult. So, as our world continues to change, so will we. Have a complicated case you need some help with? Get in touch with our broker sales team on 0372 291 2844 or visit togethermoney.com/partners/ financial-intermediaries/

Create a social 36

he rapid growth of social media over the last decade has seen organisations having to respond and react quickly, ensuring that they have a presence on this constantly evolving channel.

service, information dissemination, research and development, changing perceptions, raising awareness and much more. It is important to set the business goals which social media will support, e.g. raise brand awareness or grow market share; with no business plan you’ll find it difficult to understand if your social media strategy is working.

This quick adoption of social media has often led to organisation’s ‘doing’ social media because they feel they have to, rather than ensuring it has a purpose and delivers impact.

Since the dawn of time, marketing has been about putting the customer at the heart of everything that we do, and this is more important now than ever before given that social media provides a two-way channel for customers to shape and influence conversations and other customers. In order to satisfy their needs appropriately we need to ensure we know everything about them for example wow old are they, who influences them, what are they interested in and who currently has their attention?

As marketers we are often quizzed by the management team to demonstrate the value of social media and despite social media being able to provide a wealth of data, many struggle to answer the questions. But how can we measure impact if we don’t know what we are hoping our social media will achieve in the first place? To resolve this, it’s important to take a strategic approach by asking a few fundamental questions. The first is to ask is what do you want your social media to achieve? There are many ways social media can help to drive business forward, including: stakeholder satisfaction, customer

A Forward Thinking Network.

When we have developed a clear understanding of our target audience, we are then able to identify the appropriate channels and messages to reach them. The first step is to identify the people who will be delivering your social media and then ensure you have a process for delivering content, and importantly responding to reactions from potential customers.

media strategy Ken O’Callaghan Marketing Manager

The platforms can only be identified once you’ve confirmed your target audience. More often than not, organisations are desperate for an Instagram account (because they feel everyone else has one). However 85% of Instagram followers are below 24, and unless this is your target audience, it isn’t the right platform for your organisation. The platforms you use need to reflect your objectives and also the audience you are trying to reach. Choosing the channel to reach your audience is important; it might include you as your brand ambassador, video, news pieces or great visuals. The more targeted you are with your audience the easier it is going to be to deliver your message. It is also important to take into consideration the time of day your audience will be accessing social media, if you are posting content at midday but your audience is checking social media after 10pm before they go to bed, your messages will be lost. This means that it is key to research the habits and behaviours of your audience. However, I’m afraid there is no ‘holy grail’. It will take time and testing to identify the winning tactics for engaging your audience.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

Evaluation needs to take place on a constant basis. Daily evaluation needs to take into account content performance; does your post answer the ‘So what’ question? Is your social media content likeable, shareable and relevant to your audience? If content isn’t engaging should we repeat the post or rephrase it? Longer-term evaluation is also important in demonstrating impact; we need to be able to monitor progress over time via a clearly defined set of metrics, which reflect our objectives. For example, if your business objective is to increase market share, the marketing objective is to raise brand awareness, then the social media objective is to increase reach. The metric would be to measure social media reach each month to see if this is being increased and that your efforts are paying off. Ultimately, social media is a cheap and easily available medium which has resulted in businesses ‘doing’ social media but with little understanding of the impact. The secret is to communicate to the right customer, with the right message, on the right platform and in the right format. In doing so, you will see your social media strategy deliver results.

Weather W

ith the bad weather that’s been battering the UK over the past few months, it’s always a good idea to encourage your clients to save their insurer’s claims number and their policy reference to their phone because you never know when you might need it. For Paymentshield customers you can find this information as part of their welcome pack or on the claims section of their policyholder website. Any clients who’ve experienced damage to their home through the high winds or flooding should

A Forward Thinking Network.

gather their immediate belongings where possible, such as their phone and charger, medication, identification, important documentation and clothes, and ensure they are safe and dry. If it’s safe for them to take pictures of the damage to their home that can be a good idea and then they should get in touch with their insurer as soon as possible. Their insurer will want to know your client’s name, address and contact information and confirm their policy number. They’ll also ask for information about when the damage took place, and a description of the damage to the buildings of their home or any belongings which have been lost or damaged. If there’s been damage to any of the contents in your client’s home, they should

warning not be thrown away before speaking to their insurer’s claims team as they may want to assess the damage. It’s also a good idea to take photos of damaged items if possible. Before calling their insurer your clients should try to have as much info to hand as possible such as the make, model, serial number, colour of any lost or damaged items. For items that have been lost, locating any old photographs of the items and/ or proof of ownership such as a receipt or email confirmation of purchase is really helpful. Once your client has registered their claim with your insurer, if their home is uninhabitable as a result of the damage, they can also make sure your client and their family (pets included) have suitable alternative accommodation.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

If your clients are a Paymentshield policyholder with Home Emergency cover they can call the Home Emergency helpline on 0800 300 684, 24 hours a day for a range of emergency events such as loss of electric or central heating. And don’t forget, Paymentshield recently launched two new guides to give to your clients on how to protect their home during adverse weather. You can download your copies from the Insurer’s website to help your clients remain vigilant in adverse weather. Useful guides from Paymentshield are just one more reason to recommend Home Insurance that helps to your customers on every mortgage interview, for more simply visit their website at www.paymentshieldadvisers.co.uk or call them on 0345 0615 700.

Intermediary Designed

More than just protecting an income Our income protection offering does more than just protect an income. We can help your clients get back to work with physical and mental health support - at no extra cost.

Designed with you, for your clients.

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