Our study of mortgage brokers that are planting the seeds for a prosperous future continues this month with a look at CIS Mortgage Advice for Subcontractors, a ‘micro niche’ broker that specialises in serving – you guessed it – subcontractors who are eager to take out a mortgage.

It all started, director David Sharpstone says, eight years ago when he realised that the clients he had most enjoyed helping in his corporate brokerage job had all worked as subcontractors in the construction industry. As it happens, these borrowers had run into problems qualifying for a loan due to their self-employed status.

This move to start his own company in order to target such a defined segment of potential clients may sound counter-intuitive to people with an absolute-growth mindset, but Sharpstone’s thinking is thus: “Homebuyers with a straightforward income are being attracted to online DIY propositions.

“I anticipate that, very soon, online brokers will offer an execution-only service, and this will make it a highly competitive market – and may end up [fuelling] a professional fee-slashing race to the bottom.”

He says it makes sense to focus on providing “exceptional-quality mortgage and protection advice to homebuyers with income scenarios that cannot be easily solved by a computer”.

Sharpstone adds that this makes sense for his marketing too. Having one type of client to target makes standing out from the crowd a simpler task, and allows him, he says, to become the trusted authority for subcontractors in construction.

However, there was a psychological hump to get over in being so precise with marketing messages.

“It took a little blind faith and perseverance in the beginning, but it has definitely been a wise decision,” Sharpstone says.

There was another challenge in making the transition from a broker that served all types of client to one with such a precise focus. Whereas previously Sharpstone met clients face to face, his team now deals with cases on a national basis over the phone. He worried that this would make it difficult to build a rapport and trust in his services, but has since found that posting videos and blogs across social media brings clients closer.

Going nationwide has also meant that CIS Mortgage Advice “had to review internal compliance procedures for ID and AML checks. Digital signature software has certainly helped to speed up the customer experience, however”.

It seems that the move to become a micro niche lender is working. Sharpstone says over the past 12 months his firm has grown from a one-man band to a team of five brokers, and in this time he’s helped “hundreds” of subcontractors to secure a mortgage. He adds that many of these had less than one year’s experience and some had a “less than perfect” credit record.

“I would recommend that any broker looking to start their own business focus on just one ideal client,” he says.

“Then get on social media, think about all the typical questions that clients ask them, and one by one create a video or an article to answer those questions.

“There’s no need to be perfect. They will attract the type of client they want to work with and this will make their job enjoyable.”

Breaking away from the corporate structure and going out on his own has paid professional and personal dividends in both his work-life balance and expanding a business on his own terms.

“And I no longer need to wear a tie to the office,” Sharpstone concludes.

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