The mortgage broker landscape

Business is booming for mortgage intermediaries, the FCA reports that total earnings for 2017 increased by 23% to £1.2bn, when compared with the previous year. The figure for 2017 is almost double the total recorded for 2013. Among these impressive statistics, a number of forward-thinking brokers are looking to forge an entirely different revenue stream to drive growth further.

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The rise of unsecured finance

Awareness of finance options away from traditional banks has exploded in recent years and with increased education, new adopters have emerged. Business owners – keen to capitalise on the trend – have been approaching mortgage brokers, asking how they can secure additional funds to fuel their needs. These brokers are now familiar with business loan providers and confident enough to answer: “Look no further!” 

For example, a mortgage broker we recently partnered with explained how, after securing premises for a dental surgery, the same client was looking to purchase new equipment, but didn’t have the cash available to do so. The client was keen to secure funding as quickly as possible without the need for a personal guarantee. After contacting our team and sending over the necessary paperwork, a hopeful query from a client soon became a £100,000 unsecured business loan without the need for a personal guarantee. All completed within one working day.

Who benefits?

Offering a one-stop shop goes some way towards improving client satisfaction. Building on established relationships makes the whole process far more accessible for business owners, encouraging them to take their ventures as far as they possibly can – and with reduced effort. 

The positives of combining brokering mortgages and fully unsecured business loans are also felt by intermediaries. It broadens their professional experience in an ever-changing industry and varies their responsibilities. Thanks to speedy turnaround times, you could be one working day away from offering a service that really makes a difference to clients. Let’s not forget the added earning potential from commission. 

With new revenue streams, happier clients and pain-free application processes, the choice for mortgage brokers to secure business loans for their clients is a natural development. Offering this service could be the difference between a client choosing one mortgage broker over another. It’s time we consider commercial finance and mortgage brokers not as distant cousins, but part of the immediate family.