Following weeks of frantic moves and criteria changes, it feels as though the mortgage market is pausing a little, and maybe starting to look for the new normal.

The Easter weekend brought a calm over the sector. Whether that was down to a chocolate-induced haze, or the acceptance of our current situation, it’s paramount that as an industry, we do all we can to ensure the sector emerges in a strong position as we move beyond the initial ‘crisis management’ phase. But what does that mean in real terms?

Remortgage, remortgage, remortgage

Continuing to support clients with their ongoing mortgage needs and queries is vital.

For advisers there remains plenty of opportunities to help here. Thousands of borrowers will still be reaching the end of their product terms over the coming weeks and months, and to avoid ticking onto their lender’s SVR, they will need to remortgage. In fact, new data from LMS already shows signs that the remortgage market is stabilising.

Advice will be critical for these consumers, as it always has been, helping them to navigate the market and find the best product for their needs. Product transfers will also be a good option for many and again, this could be a strong opportunity for advisers to discuss next steps with their clients. Last year only 35 per cent of all PT business was conducted through an adviser. We now have an opportunity to ensure this part of the market is fully served with independent advice.

Let’s get lending

Recent days and weeks have seen myself and others from across our industry call on lenders to keep lending, and whilst we have seen some positive progress, we need to go further and continue to offer a broad range of options to customers. Stability is starting to return to the market, and we’ve seen lenders moving back to higher LTV products. The availability of these mortgages remains restricted, though, and there is still a long way to go – particularly for the specialist lending sector.

Part of that challenge will be to help lenders manage the operational implications of the payment holiday rush, so they can focus on providing more lending and product options. This requires us all to ensure that mortgage holidays are only taken by those who really need them.

Newly released data from UK Finance has shown that one in nine UK mortgages are being helped by payment holidays. Deferring payments could mean everything to many borrowers by helping them to manage their outgoings at this difficult time. However, there are concerns that some borrowers have opted to take a payment holiday just because they can – and without knowledge of the potential costs.

Put simply, there is a cost to these so-called mortgage holidays. Interest is rolled over and the mortgage is extended, meaning borrowers will be paying off their mortgage for longer. Questions also remain about how these payment holidays could impact lenders’ future views of customers, restricting their potential lending options down the line.

Your advice will ensure these customers are fully aware of any implications.

Embracing the current calm

From digital valuations to ‘FaceTime advice’, the impact of Covid-19 on the way we work has shown how critical it can be to embrace technology.

The Covid-19 crisis is certainly leading more lenders to embrace digital valuation models, and it is here that a fundamental change may emerge due to the current crisis. We could see the 80/20 rule invert completely, from the majority of valuations being physical to the majority being digital. An area where we will start to see transformation, not optimisation in the mortgage process.

Other parts of the mortgage journey may also change, and regularly reviewing our businesses will enable us to take advantage of these shifts.

Maintaining close contact with customers is vital in the current climate. Confident advisers are already embracing tech to efficiently and effectively manage their existing customer base and many will need to consider if their current customer relationship management tools are giving them the support they need. Many people would appreciate seeing a friendly face at the moment, so utilising tools such as Zoom and Skype to provide advice and guidance by video chat can make a big difference.

Finally, mortgage clubs and networks are not immune to the need to adapt to this new normal. Our challenge is to provide the support and information adviser partners need to navigate this new environment, whether that’s helping them to keep up to date with the ongoing criteria changes or which lenders are using digital valuations. At Legal & General Mortgage Club we’ve created our Covid-19 update page to help answer any key questions advisers may have. We will need to ensure the value we are delivering is clear.

The post-coronavirus world will bring many questions and challenges for the mortgage sector. As we exit the ‘crisis management’ phase, now is the time to focus on doing what we all do best – supporting our clients with their mortgage needs.

Focusing on the opportunities, from remortgaging to product transfers, embracing our digital world and working together will help our industry to emerge in the strongest position possible once the crisis is over.